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On 1 May 2018, a Petty Cashier in a busy hairdressing business, had an imprest of €225 - Junior Cycle Business Studies - Question 11 - 2018
Question 11
On 1 May 2018, a Petty Cashier in a busy hairdressing business, had an imprest of €225. During the month of May, she spent €57 on magazines, €59 on postage and €61 o... show full transcript
Worked Solution & Example Answer:On 1 May 2018, a Petty Cashier in a busy hairdressing business, had an imprest of €225 - Junior Cycle Business Studies - Question 11 - 2018
Step 1
Explain the term 'Imprest'.
Answer
The term 'Imprest' refers to a fixed or same amount of money that the Petty Cashier starts with at the beginning of each month. It acts as a float to cover minor expenses and is replenished when it runs low, ensuring that the cash available for small expenditures remains consistent.
Step 2
Calculate the amount the Petty Cashier will require to restore the imprest.
Answer
To restore the imprest, we first need to calculate the total amount spent during the month:
Total spent = Amount on magazines + Amount on postage + Amount on refreshments
Since the initial imprest was €225, the amount required to restore it would be:
Amount to restore = Initial imprest - Total spent
Thus, the Petty Cashier will require €48 to restore the imprest.