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Maharashtra HSC Accounting & Office Management (Vocational) study materials
Maharashtra HSC Accounting & Office Management (Vocational) study resources

Maharashtra HSC Accounting & Office Management (Vocational) practice questions

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Question 1Book-Keeping and Accountancy

In book-keeping, which account is debited when goods are sold on credit to a customer under the double entry system?

  1. Sales Account
  2. Purchases Account
  3. The customer's personal account Correct answer.
  4. Cash Account

Explanation

Under the double entry system, a credit sale creates a debtor, so the receiver (the customer's personal account) is debited and the Sales Account is credited. Cash is untouched because the sale is on credit, and Purchases records goods bought, not sold.

Question 2Book-Keeping and Accountancy

A trader received a cheque of Rs 15,000 from a debtor and deposited it the same day. Which journal entry records this transaction?

  1. Debtor's A/c Dr 15,000; Bank A/c Cr 15,000
  2. Bank A/c Dr 15,000; Debtor's A/c Cr 15,000 Correct answer.
  3. Bank A/c Dr 15,000; Sales A/c Cr 15,000
  4. Cash A/c Dr 15,000; Bank A/c Cr 15,000

Explanation

A cheque received from a debtor increases the bank balance (asset increases, so debit) and reduces the debtor's outstanding balance (asset decreases, so credit). The debtor is not debited because the amount owed is being settled, not increased.

Question 3Book-Keeping and Accountancy

Which of the following is a capital expenditure for a manufacturing business?

  1. Wages paid to workers assembling goods for sale
  2. Annual insurance premium on the factory building
  3. Cost of installing a new generator in the factory Correct answer.
  4. Freight paid on goods purchased for resale

Explanation

Capital expenditure is incurred to acquire or install a fixed asset that gives benefit over several years. Installing a generator adds a long-term asset to the factory, so its cost is capitalised. Wages, freight on trading goods and insurance premium are routine revenue items.

Question 4Book-Keeping and Accountancy

The trial balance of a firm shows total debits of Rs 1,20,000 and total credits of Rs 1,18,500. Which error is most likely responsible?

  1. A purchase of Rs 1,500 was posted to the wrong supplier's account
  2. A credit sale of Rs 1,500 was completely omitted from the books
  3. A sale of Rs 1,500 to Ram was posted to Shyam's account
  4. Discount allowed of Rs 1,500 was entered only in the cash book Correct answer.

Explanation

A trial balance difference arises only from one-sided or arithmetical errors, because equal debits and credits are disturbed. Recording discount allowed in the cash book without a corresponding posting to the discount account leaves one side short by Rs 1,500, matching the difference.

Question 5Book-Keeping and Accountancy

Goods worth Rs 8,000 were returned by a customer. Which account should be debited in the seller's books?

  1. Sales Returns Account Correct answer.
  2. Purchases Returns Account
  3. Sales Account
  4. Customer's Personal Account

Explanation

When a customer returns goods, the seller's sales are reduced through the Sales Returns (Returns Inward) Account, which is debited. The customer's account is credited because the amount recoverable from that debtor falls.

Question 6Book-Keeping and Accountancy

A trader's cash book shows a bank overdraft of Rs 12,000. How will this balance appear in the trial balance?

  1. Debit column of the trial balance
  2. Omitted from the trial balance
  3. Shown on both sides of the trial balance
  4. Credit column of the trial balance Correct answer.

Explanation

A bank overdraft is a liability, since the bank has advanced funds to the business. Liabilities carry credit balances, so the overdraft figure is entered in the credit column of the trial balance.

Question 7Book-Keeping and Accountancy

Which of the following is recorded in the Purchases Book of a stationery dealer?

  1. Goods bought on credit for resale Correct answer.
  2. Goods returned to a supplier
  3. Furniture bought on credit for the office
  4. Goods bought for cash for resale

Explanation

The Purchases Book records only credit purchases of goods in which the business deals. For a stationery dealer, stationery bought on credit for resale qualifies, while asset purchases, cash purchases and returns go elsewhere.

Question 8Book-Keeping and Accountancy

Under the diminishing balance method, an asset costing Rs 1,00,000 is depreciated at 10% per annum. What is the depreciation charge for the second year?

  1. Rs 19,000
  2. Rs 8,100
  3. Rs 9,000 Correct answer.
  4. Rs 10,000

Explanation

Diminishing balance depreciation is computed on the written-down value. After the first year the book value is Rs 90,000, so the second-year charge is 10% of Rs 90,000, which is Rs 9,000.

Question 9Book-Keeping and Accountancy

A bill of exchange drawn on 15th March for three months is accepted the same day. What is its legally due date?

  1. 18th June Correct answer.
  2. 14th June
  3. 15th June
  4. 15th July

Explanation

A bill payable at three months from 15th March matures on 15th June, and three days of grace are added, giving 18th June as the due date. Days of grace are a statutory addition in the Negotiable Instruments Act.

Question 10Book-Keeping and Accountancy

Which of the following errors affects the agreement of the trial balance?

  1. Cash received from a debtor was posted to the wrong debtor's account
  2. Salary paid Rs 2,000 was debited to Rent Account Correct answer.
  3. A sale of Rs 500 to Mehta was recorded as Rs 50 in both accounts
  4. A credit purchase of Rs 3,000 was not recorded at all

Explanation

A trial balance fails to agree when the two sides of a transaction are posted unequally. Debiting salary to Rent Account puts the amount on the debit side but leaves the Salary Account untouched, so one credit is missing and a difference appears.

Question 11Book-Keeping and Accountancy

In a partnership firm, interest on capital is allowed at 8% per annum. Partner A's capital is Rs 2,00,000 and drawings during the year were Rs 50,000. What is the interest on capital credited to A?

  1. Rs 20,000
  2. Rs 16,000 Correct answer.
  3. Rs 12,000
  4. Rs 4,000

Explanation

Interest on capital is calculated on the capital balance, not on drawings, unless the deed provides otherwise. At 8% on Rs 2,00,000, the interest credited to A is Rs 16,000.

Question 12Book-Keeping and Accountancy

Which item is deducted from the cost of goods sold while preparing a trading account?

  1. Opening stock
  2. Carriage outward
  3. Wages and factory rent
  4. Closing stock Correct answer.

Explanation

Closing stock is the value of unsold goods at year end and is deducted from the total of opening stock plus purchases plus direct expenses to arrive at cost of goods sold. It appears on the credit side of the trading account.

Question 13Book-Keeping and Accountancy

A firm's current ratio is 2:1 and its current liabilities are Rs 60,000. If it purchases goods worth Rs 20,000 on credit, what is the new current ratio?

  1. 2:1
  2. 1.75:1 Correct answer.
  3. 1.5:1
  4. 2.5:1

Explanation

Current assets were Rs 1,20,000 against liabilities of Rs 60,000. A credit purchase raises stock by Rs 20,000 and creditors by Rs 20,000, giving Rs 1,40,000 against Rs 80,000, which is 1.75:1.

Question 14Book-Keeping and Accountancy

Which source document supports the recording of a credit purchase of goods?

  1. Cash memo issued by the seller
  2. Debit note issued by the buyer
  3. Invoice received from the supplier Correct answer.
  4. Pay-in-slip stamped by the bank

Explanation

A credit purchase is evidenced by the supplier's invoice, which states the goods, quantity and amount due. The buyer uses this inward invoice as the basis for entering the transaction in the Purchases Book.

Question 15Book-Keeping and Accountancy

In the absence of a partnership deed, how is profit shared between two partners under the Indian Partnership Act, 1932?

  1. In the ratio of their drawings
  2. Equally between the partners Correct answer.
  3. As decided by the senior partner
  4. In the ratio of their capitals

Explanation

Where no deed exists, the Partnership Act provides that profits and losses are shared equally, irrespective of capital contributed. Capital ratio applies only when the deed expressly says so.

Question 16Book-Keeping and Accountancy

A company issued 10,000 equity shares of Rs 10 each at a premium of Rs 3 per share, payable fully on application. What amount is credited to the Securities Premium Account?

  1. Rs 13,000
  2. Rs 30,000 Correct answer.
  3. Rs 1,30,000
  4. Rs 1,00,000

Explanation

Securities premium is the excess received over the face value of shares. Here the excess is Rs 3 per share on 10,000 shares, giving Rs 30,000 credited to the Securities Premium Account.

Question 17Book-Keeping and Accountancy

Which of the following is debited to the Profit and Loss Account of a sole trader?

  1. Purchase of a delivery van
  2. Loss by fire not covered by insurance Correct answer.
  3. Discount received from a supplier
  4. Drawings of the proprietor

Explanation

An uninsured loss by fire is an abnormal expense that reduces the proprietor's profit and is therefore written off to the Profit and Loss Account. Drawings and asset purchases are capital items, while discount received is income.

Question 18Book-Keeping and Accountancy

A bank reconciliation statement is prepared starting from the cash book balance. Cheques of Rs 25,000 issued to creditors were not presented for payment. How is this treated?

  1. Added only if the bank shows a debit balance
  2. Deducted from the cash book balance
  3. Added to the cash book balance Correct answer.
  4. Ignored in the reconciliation

Explanation

Cheques issued are already recorded as payments in the cash book, reducing the bank balance there, but the bank has not yet paid them. To reconcile, the unpresented amount is added back to the cash book balance to reach the pass book balance.

Question 19Book-Keeping and Accountancy

Which of the following is a contingent liability disclosed in the notes to the balance sheet?

  1. A bill discounted with the bank but not yet matured Correct answer.
  2. Loan taken from a bank repayable after five years
  3. Outstanding salary payable to staff
  4. Provision for doubtful debts

Explanation

A contingent liability is a possible obligation whose existence depends on a future event. A discounted bill becomes a real liability only if the acceptor dishonours it, so it is disclosed by note rather than recorded.

Question 20Book-Keeping and Accountancy

A trader maintains a petty cash book on the imprest system with a float of Rs 5,000. Expenses of Rs 3,600 were paid during the month. How much is reimbursed to restore the imprest?

  1. Rs 5,000
  2. Rs 3,600 Correct answer.
  3. Rs 1,400
  4. Rs 8,600

Explanation

Under the imprest system the petty cashier is reimbursed exactly the amount spent, so that the float returns to the original figure. Expenses of Rs 3,600 are therefore reimbursed in full.

Question 21Book-Keeping and Accountancy

Which of the following best describes the going concern concept in accounting?

  1. The business is assumed to continue operating for the foreseeable future Correct answer.
  2. Transactions are recorded at the time cash is received or paid
  3. Only transactions measurable in money are recorded
  4. Assets are valued at their current market price each year

Explanation

The going concern concept assumes the entity will continue in operation long enough to realise its assets and settle its liabilities in the ordinary course. This assumption justifies carrying fixed assets at cost less depreciation rather than at break-up value.

Question 22Book-Keeping and Accountancy

In a three-column cash book, a cheque received from a customer is dishonoured. Where is the entry recorded?

  1. Discount column, debit side
  2. Bank column, credit side Correct answer.
  3. Cash column, credit side
  4. Bank column, debit side

Explanation

A dishonoured cheque cancels the earlier receipt, so the bank balance falls and the entry is made on the credit side of the bank column. The customer's account is simultaneously debited in the ledger with the amount.

Question 23Book-Keeping and Accountancy

A firm's sales are Rs 5,00,000, gross profit is 25% on sales and closing stock is Rs 60,000. What is the cost of goods sold?

  1. Rs 1,25,000
  2. Rs 3,75,000 Correct answer.
  3. Rs 5,00,000
  4. Rs 4,40,000

Explanation

Gross profit at 25% of sales is Rs 1,25,000, so cost of goods sold is sales minus gross profit, that is Rs 3,75,000. Closing stock is not deducted again because cost of goods sold is already net of closing stock.

Question 24Book-Keeping and Accountancy

Which account is credited when a partner brings in machinery as his capital contribution?

  1. Partner's Capital Account Correct answer.
  2. Machinery Account
  3. Revaluation Account
  4. Cash Account

Explanation

When a partner introduces an asset as capital, the asset account is debited and the partner's capital account is credited with the agreed value. This increases the partner's stake in the firm without any cash inflow.

Question 25Book-Keeping and Accountancy

Goods costing Rs 20,000 were sent to a consignee at a proforma invoice price of Rs 25,000. What is the loading on consignment?

  1. Rs 20,000
  2. Rs 5,000 Correct answer.
  3. Rs 25,000
  4. Rs 45,000

Explanation

Loading is the difference between the proforma invoice value and the actual cost of goods consigned. Here it is Rs 25,000 minus Rs 20,000, giving Rs 5,000, which is removed when computing consignment profit.

Question 26Book-Keeping and Accountancy

A sole trader keeps his books on the single entry system. He began the year with capital of Rs 80,000 and ended with capital of Rs 1,10,000. During the year he withdrew Rs 15,000 for personal use. What was his profit for the year?

  1. Rs 15,000
  2. Rs 45,000 Correct answer.
  3. Rs 30,000
  4. Rs 25,000

Explanation

Under the statement of affairs method, profit equals closing capital plus drawings minus opening capital. Here that is 1,10,000 + 15,000 - 80,000 = Rs 45,000. Drawings are added back because they reduce capital without being a business loss.

Question 27Book-Keeping and Accountancy

Which of the following is entered in the Sales Book of a dealer in furniture?

  1. Credit sale of furniture to a customer Correct answer.
  2. Cash sale of furniture over the counter
  3. Sale of furniture to the proprietor for personal use
  4. Sale of old office typewriter on credit

Explanation

The Sales Book records only credit sales of goods in which the firm deals. A credit sale of furniture is the trader's normal merchandise sold on credit, so it belongs there. Cash sales go to the cash book and asset sales go to the journal proper.

Question 28Book-Keeping and Accountancy

A machine costing Rs 2,00,000 is depreciated at 10% per annum on the straight line method. After three years it is sold for Rs 1,30,000. What is the profit or loss on sale?

  1. Profit of Rs 10,000
  2. Profit of Rs 30,000
  3. Loss of Rs 10,000 Correct answer.
  4. Loss of Rs 70,000

Explanation

Annual depreciation is Rs 20,000, so accumulated depreciation for three years is Rs 60,000 and book value is Rs 1,40,000. Selling price of Rs 1,30,000 is lower by Rs 10,000, giving a loss of Rs 10,000.

Question 29Book-Keeping and Accountancy

Which of the following is the correct treatment of abnormal loss in the consignment account?

  1. Debited to the consignee's account
  2. Credited to the consignment account and debited to the Profit and Loss Account Correct answer.
  3. Ignored until the consignment is fully sold
  4. Credited directly to the consignor's capital account

Explanation

Abnormal loss is credited to the consignment account to reduce its debit, and the corresponding debit goes to the Profit and Loss Account. Any insurance claim recovered is credited to the Profit and Loss Account. This keeps the consignment account free of losses not arising from normal trading.

Question 30Book-Keeping and Accountancy

A and B share profits in the ratio 3:2. They admit C for a 1/5 share, which he acquires entirely from A. What is the new profit sharing ratio of A and B?

  1. 12:13
  2. 2:2 Correct answer.
  3. 12:8
  4. 3:2

Explanation

C takes 1/5 from A's 3/5, leaving A with 2/5, while B keeps 2/5. The new ratio is therefore 2/5 : 2/5, that is 2:2 or 1:1. Only A's share is reduced because C acquired his share solely from A.

Question 31Book-Keeping and Accountancy

Which of the following is shown as a deduction from the called-up capital while preparing the balance sheet of a company?

  1. Securities premium
  2. Share forfeiture account
  3. Calls in arrears Correct answer.
  4. Calls in advance

Explanation

Calls in arrears represents amounts called but not yet received, so it is deducted from called-up capital to arrive at paid-up capital. Calls in advance are added as a liability, while securities premium and forfeiture are separate reserve items.

Question 32Book-Keeping and Accountancy

A company purchases its own debentures of face value Rs 50,000 for Rs 48,000 as a treasury investment. What is the correct accounting entry?

  1. Debit Bank Rs 48,000 and credit Own Debentures Account Rs 48,000
  2. Debit Own Debentures Account Rs 50,000 and credit Bank Rs 50,000
  3. Debit Own Debentures Account Rs 48,000 and credit Bank Rs 48,000 Correct answer.
  4. Debit Debenture Holders Account Rs 48,000 and credit Bank Rs 48,000

Explanation

When a company buys its own debentures as an investment, the asset is recorded at the actual cost paid, not the face value. The entry therefore debits Own Debentures Investment Account and credits Bank with Rs 48,000. The discount is accounted for only when the debentures are cancelled.

Question 33Book-Keeping and Accountancy

Under the Fixed Instalment Method, depreciation is charged on which amount?

  1. The written down value at the start of each year
  2. The original cost of the asset Correct answer.
  3. The market value of the asset
  4. The original cost less scrap value, spread over the life

Explanation

The Fixed Instalment Method, also called the straight line method, charges a constant amount each year calculated on the original cost. The same amount is written off every year until the asset is fully depreciated to its residual value.

Question 34Book-Keeping and Accountancy

A firm's cash book shows a credit balance of Rs 8,000 and cheques of Rs 3,000 deposited have not yet been cleared by the bank. What is the balance as per the pass book?

  1. Overdraft of Rs 5,000
  2. Balance of Rs 5,000
  3. Balance of Rs 11,000
  4. Overdraft of Rs 11,000 Correct answer.

Explanation

Starting from a credit balance in the cash book means an overdraft. Cheques deposited but not yet collected are not credited by the bank, so the overdraft as per the pass book is larger by Rs 3,000, that is Rs 11,000.

Question 35Book-Keeping and Accountancy

Which of the following is entered in the Purchases Returns Book?

  1. Allowance received for damaged goods kept by the firm
  2. Return of a fixed asset to the supplier
  3. Goods returned to a supplier Correct answer.
  4. Goods returned by a customer

Explanation

The Purchases Returns Book, also called the returns outward book, records goods sent back to suppliers. Only return of goods bought for resale is recorded there. Returns from customers go to the Sales Returns Book.

Question 36Book-Keeping and Accountancy

In the absence of a partnership deed, a partner who advances a loan of Rs 1,00,000 to the firm is entitled to interest at what rate?

  1. 6% per annum Correct answer.
  2. No interest at all
  3. 8% per annum
  4. 9% per annum

Explanation

Under the Indian Partnership Act, 1932, in the absence of an agreement interest on a partner's loan is allowed at 6% per annum. This is one of the statutory defaults applied when the deed is silent. Interest on capital, by contrast, is not allowed by default.

Question 37Book-Keeping and Accountancy

Which of the following is a source document for recording a credit sale of goods?

  1. Purchase invoice
  2. Debit note
  3. Pay-in slip
  4. Sales invoice Correct answer.

Explanation

A sales invoice is raised by the seller when goods are sold on credit and forms the basis of the entry in the Sales Book. It shows the buyer, the goods, the quantity and the amount payable.

Question 38Book-Keeping and Accountancy

A firm has current assets of Rs 3,00,000 and current liabilities of Rs 1,50,000. It pays a creditor of Rs 50,000 in cash. What is the current ratio after the payment?

  1. 2:1 Correct answer.
  2. 2.5:1
  3. 1.67:1
  4. 1:1

Explanation

Paying a creditor reduces cash and creditors by the same amount, so current assets become Rs 2,50,000 and current liabilities Rs 1,00,000. The ratio is 2,50,000 : 1,00,000 = 2.5:1, so the option stating 2:1 is not the answer.

Question 39Book-Keeping and Accountancy

A trader sends goods costing Rs 40,000 to a consignee at a proforma invoice price of 25% above cost. What is the amount of loading on consignment?

  1. Rs 8,000
  2. Rs 10,000 Correct answer.
  3. Rs 12,000
  4. Rs 5,000

Explanation

Loading is the difference between the invoice price and the cost of goods. Cost is Rs 40,000 and 25% of cost is Rs 10,000, so the invoice price is Rs 50,000 and the loading is Rs 10,000.

Question 40Book-Keeping and Accountancy

Which of the following is the correct order of the accounting cycle?

  1. Trial balance, journal, ledger, financial statements
  2. Journal, trial balance, ledger, financial statements
  3. Journal, ledger, trial balance, financial statements Correct answer.
  4. Ledger, journal, trial balance, financial statements

Explanation

Transactions are first recorded in the journal, then posted to ledger accounts, from which a trial balance is extracted to test arithmetical accuracy. Financial statements are prepared last from the ledger balances.

Question 41Book-Keeping and Accountancy

A firm earns a net profit of Rs 1,20,000 after charging a partner's salary of Rs 30,000. The partnership deed allows salary to the partner but is silent on interest on capital. How is interest on capital treated?

  1. Not allowed at all in the absence of an agreement Correct answer.
  2. Allowed at 6% per annum as a charge against profit
  3. Allowed at 8% per annum like interest on loan
  4. Allowed only if there is profit after salary

Explanation

Under the Indian Partnership Act, 1932, interest on capital is not allowed unless the deed provides for it. The statutory default covers interest on a partner's loan only. Hence no interest on capital can be credited here.

Question 42Book-Keeping and Accountancy

Which of the following errors is disclosed by a trial balance?

  1. Wrong casting of a ledger account Correct answer.
  2. Complete omission of a transaction from the books
  3. Recording a transaction in the wrong subsidiary book
  4. Posting an amount to the wrong side of the correct account

Explanation

A trial balance checks only the arithmetical accuracy of ledger postings. An error in casting a ledger account changes one side's total and therefore disturbs the trial balance agreement.

Question 43Book-Keeping and Accountancy

A bill of exchange drawn on 10th June for two months is accepted on 12th June. What is its maturity date, assuming no days of grace are added separately?

  1. 10th August
  2. 10th July
  3. 12th August Correct answer.
  4. 12th July

Explanation

The period of a bill runs from the date of acceptance, not the date of drawing. Two months from 12th June is 12th August, which is the due date before adding the three days of grace.

Question 44Book-Keeping and Accountancy

Which of the following is the correct treatment of goods distributed as free samples?

  1. Debited to Purchases Account
  2. Credited to Sales Account
  3. Debited to Advertisement Account Correct answer.
  4. Debited to Drawings Account

Explanation

Goods given away as free samples are a promotional expense, so the cost is debited to Advertisement Account. The corresponding credit goes to Purchases, since the goods are no longer available for sale.

Question 45Book-Keeping and Accountancy

A company forfeits 500 equity shares of Rs 10 each, fully called, on which Rs 7 per share was received, for non-payment of the final call of Rs 3. What amount is credited to the Share Forfeiture Account?

  1. Rs 5,000
  2. Rs 1,500
  3. Rs 3,500 Correct answer.
  4. Rs 7,000

Explanation

The Share Forfeiture Account is credited with the amount actually received on the forfeited shares, not the called-up amount. Here Rs 7 per share was received on 500 shares, giving Rs 3,500.

Question 46Book-Keeping and Accountancy

A firm's opening stock is Rs 50,000, purchases are Rs 2,50,000, carriage inward is Rs 10,000 and closing stock is Rs 60,000. What is the cost of goods sold?

  1. Rs 2,70,000
  2. Rs 2,40,000
  3. Rs 2,60,000
  4. Rs 2,50,000 Correct answer.

Explanation

Cost of goods sold equals opening stock plus purchases plus direct expenses minus closing stock. That gives 50,000 + 2,50,000 + 10,000 - 60,000 = Rs 2,50,000.

Question 47Book-Keeping and Accountancy

Which of the following is the correct accounting treatment of a contingent liability in the financial statements of a company?

  1. Debited to the Profit and Loss Account
  2. Ignored completely until the claim is settled
  3. Shown as a liability in the balance sheet
  4. Disclosed by way of a note to the accounts Correct answer.

Explanation

A contingent liability is a possible obligation whose existence depends on a future event. It is not recognised in the balance sheet, but it must be disclosed in the notes unless the possibility of outflow is remote.

Question 48Book-Keeping and Accountancy

A trader's cash book shows a debit balance of Rs 15,000. Cheques of Rs 4,000 issued to suppliers are still to be presented, and bank charges of Rs 500 are not yet entered in the cash book. What is the balance as per the pass book?

  1. Rs 19,500 Correct answer.
  2. Rs 10,500
  3. Rs 11,500
  4. Rs 18,500

Explanation

Cheques issued but not presented are added to the cash book balance, giving Rs 19,000. Bank charges not recorded in the cash book must then be deducted, giving Rs 18,500.

Question 49Book-Keeping and Accountancy

Which of the following is debited to the Revaluation Account when a new partner is admitted?

  1. Increase in the value of machinery
  2. Decrease in the value of stock Correct answer.
  3. Unrecorded investment now brought into books
  4. Increase in the value of creditors

Explanation

The Revaluation Account records the net gain or loss on revaluation of assets and liabilities before admission. A decrease in the value of an asset is a loss, so it is debited to the Revaluation Account.

Question 50Book-Keeping and Accountancy

A firm maintains a petty cash book on the imprest system with a float of Rs 6,000. During the month it paid Rs 4,300 for expenses. What amount is reimbursed to the petty cashier at the start of the next month?

  1. Rs 10,300
  2. Rs 1,700
  3. Rs 6,000
  4. Rs 4,300 Correct answer.

Explanation

Under the imprest system, the petty cashier is reimbursed exactly the amount spent so that the float is restored to its original level. Expenses of Rs 4,300 are therefore reimbursed, bringing the balance back to Rs 6,000.