A petty cash book kept on the Imprest system has an imprest amount of Rs 5,000. If total expenses were Rs 4,200, the reimbursement amount is: MCQ with Answer and Explanation

Question

A petty cash book kept on the Imprest system has an imprest amount of Rs 5,000. If total expenses were Rs 4,200, the reimbursement amount is:

A. Rs 4,200

B. Rs 800

C. Rs 9,200

D. Rs 5,000

Answer: Option A

Solution (By JKSSB Mock Tests)

The cashier is reimbursed exactly the amount spent (Rs 4,200) so the balance returns to the imprest figure of Rs 5,000.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

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The concept of 'Cost Drivers' is fundamental to which costing technique?

A. Standard Costing

B. Batch Costing

C. Marginal Costing

D. Activity Based Costing (ABC)

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Correct Answer: Option D

Explanation:
ABC uses cost drivers (e.g., number of setups, machine hours) to allocate overheads to products based on the activities they consume.

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Question #2

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Goods given away as charity should be credited to:

A. Cash Account

B. Charity Account

C. Sales Account

D. Purchases Account

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Correct Answer: Option D

Explanation:
Donating goods reduces the stock of purchased goods. Thus, the Purchases account is credited at cost price.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

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Under the 'Cash Basis' of accounting, outstanding expenses are:

A. Not recorded

B. Recorded as liability

C. Recorded as income

D. Recorded as asset

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Correct Answer: Option A

Explanation:
Cash basis only records cash transactions, so outstanding expenses are ignored.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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