ZIMSEC O Level Principles of Accounts Notes: Source Documents: The petty Cash Book: The Imprest system
- The imprest system is one where the cashier gives the petty cashier enough cash to meet
the petty cash needs for the following period
- This amount is known as a float amount
- Let’s say this amount is $500
- Then, at the end of the given period,say one month,
- The cashier finds out the amounts spent by the petty cashier, by looking at the entries in the Petty Cash Book
- At the same time, the petty cashier may give the petty cash vouchers to the cashier so that the
entries in the Petty Cash Book may be checked
- Let’s say the Petty Cashier has spend let’s say for example the Petty Cashier has spend $450 during that period
- The Cashier then gives the Petty Cashier $450 so at the beginning of the next period the Cashier has $500
- Under the imprest system the Petty Cashier maintains a fixed float balance that is replenished by the Cashier at the end of a prescribed period
- It may be necessary to increase the float amount in which cash the Petty Cashier’s float balance can be increased when the need arises
To access more topics go to the Principles of Accounts Notes.
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