Period 1:
........Cash to petty cashier.............N1000
........Petty cashier pays out............N780

Period 2:
........Petty cashier pays out............N840

If the float is increased to N1200, how much should the petty cashier receive after period 2?

A.

160

B.

840

C.

1000

D.

1040

Correct answer is D

Previous imprest - pay out in period 2;

 1,000 - 840 = 160
Then when it is increased to 1200;

1200 - 160 = 1040

The petty cashier will be reimbursed with 1,040