The following is a summary of the petty cash transactions for a week:

  • Opening balance: N50,000
  • Sales of stamps: N10,000
  • Sales of paper: N50,000
  • Travelling expenses: N150,000
  • Subsistence expenses: N250,000

What sum should be reclaimed by the cashier at the end of the week?
A. N550,000
B. N500,000
C. N400,000
D. N340,000
E. N160,000

C. N400,000

Explanation:
Under the imprest system, the amount to be reimbursed is the total amount spent. Here, the total expenses (N150,000 + N250,000) amount to N400,000, which is what the cashier should reclaim to restore the imprest balance.

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