Quick Answer: What Is Imprest Cash Book?

How do you calculate petty cash?

Add up the total expenditure listed on each petty cash voucher in the petty cash fund (the information can also come from the petty cash book).

Subtract this amount from the calculated amount of cash withdrawn.

The result should be zero.

If there is a residual balance, then there is a cash overage in the fund..

What is the difference between imprest and petty cash?

An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. … In other words, the general ledger account Petty Cash is not involved in the replenishment. (Replenishment means getting the total of the currency and coins back to the imprest amount.)

What are the two types of imprest?

Imprest is of two classes, namely: Standing Imprest, held throughout the financial year and replenished as and when necessary by the presentation of receipt and petty cash vouchers; and.

What is petty cash book?

The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. … This format is an excellent way to monitor the current amount of petty cash remaining on hand.

What is imprest system of cash book?

The imprest system is a form of financial accounting. The most common is petty cash. The basic characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, will be replenished.

How many types of imprest are there?

361 types of imprest there are two types of imprest.

What are types of cash book?

There are three common versions of the cash book: single column, double column, and triple column. The single-column cash book shows only receipts and payments of cash. The double-column cash book shows cash receipts and payments as well as details about bank transactions.

Who is imprest holder?

(2) The imprest holder is responsible for ensuring that (a) funds are available under a Warrant; and (b) vouchers are properly authenticated. Sub-Imprest 287.

What is permanent imprest?

Permanent imprest: Permanent imprest involves entrusting an employee with petty cash for procurement and paying for urgent daily services. Petty cash will be replenished after a certain period of time with the amount spent at a minimum of 25% of the total value each time.

What is an imprest warrant?

GFR & P – An imprest is a form of cash advance or a “float” which the Accounting Officer may authorize to be issued to officers who in the course of their duty are required to make payments which cannot conveniently be made through the cash office of their Ministry, Department or District Treasury.

What is petty cash book example?

A petty cash is a cash book used to enter all small or petty expenses obtained. For example tea, Xerox copy etc. The petty cash book is to enter how the cash available for daily expenses are spent for example milk, tea, taxi charges and postage.

What are the disadvantages of imprest system?

The petty cash system will cause you numerous problems if it’s not managed properly.Accounting Errors. Your business’s petty cash system is susceptible to accounting errors because of the absence of a secondary documentation for tracking the cash. … Theft. … Misappropriation. … Overspending.

What is imprest cash?

An imprest account is used for handling minor disbursements whereby a fixed amount of money is set aside for this purpose. … The total of petty cash on hand plus the amount of signed receipts or petty cash vouchers at any one time must equal the total amount authorized for the imprest account.

What is petty cash voucher?

A petty cash voucher is usually a small form that is used to document a disbursement (payment) from a petty cash fund. Petty cash vouchers are also referred to as petty cash receipts and can be purchased from office supply stores. … Reason for the disbursement. General ledger account to be charged.

What is petty cash float?

The float is the maximum amount that can be held in petty cash at any time. The amount disbursed from the petty cash should be reimbursed when the fund falls to the level at which it must be replenished.