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

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