Loading....

WAEC SSCE - Financial Accounting - 2001 (Objective)

Question 1 Report

Use the following information to answer the given question,
Taiwo is a sole trader who keeps his petty cash on the imprest system, the imprest amount being N4,000. The following transactions took place for a particular month:
\(\begin{array}{c|c} & & & N \\ \hline Dec. & 1 & \text{petty cash in hand} & 517 \\ & 1 & \text{petty cash to imprest amount} & 3,483 \\ & 6 & \text{Bought notebooks} & 328\\ & 7 & \text{Paid wages} & 914\\ & 14 & \text{Bought postage stamps} & 375 \\ & 16 & \text{Paid to J. Thomas, a creditor} & 536 \\ & 21 & \text{Paid wages} & 928 \\ & 23 & \text{Bought envelopes} & 437 \\ & 27 & \text{Bought postage stamps} & 210\end{array}\)
Amount soent on stationery is
Answer Details
The amount spent on stationery can be calculated by adding up all the transactions related to stationery. From the information given, we know that notebooks and envelopes were bought, which are both types of stationery. The amount spent on notebooks is N328, and the amount spent on envelopes is N437. So, the total amount spent on stationery is N328 + N437 = N765. Therefore, the correct option is N765. It is important to keep track of petty cash transactions using the imprest system to ensure that the petty cash fund is always replenished and that there is proper documentation for all transactions. This helps to prevent fraud and mismanagement of funds.
Read lesson note on Cashbook (JAMB)
Read lesson note on Incomplete Records And Single Entry (JAMB)
View Answer