The imprest system involves the following steps:
- A petty cash fund is established, with a set amount of cash. ...
- Any expenses paid through the petty cash fund must be documented with receipts.
- The fund is replenished regularly with disbursement receipts to maintain a fixed balance.
What are the types of imprest system?
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 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.
