Imprest system of petty cash :
The most common system used to maintain the petty cash book is known as the imprest system.this involved co- ordination between the cashier responsible for the cashbook and the cashier responsible for the petty cash book.
The cashier will give the petty book cashier just enough money to cover the petty cash transaction of a period of time usually one month at the end of the month the amount actually spent will be totaled up and the amount will be refunded from the main cashbook as follow :
Petty cash book a/c. Dr
To cash book a/c.
In this way , the balance on the petty cashbook will alway be the same at the start of each period.this opening balance is known as the float or imp rest.
The cashier will give the petty book cashier just enough money to cover the petty cash transaction of a period of time usually one month at the end of the month the amount actually spent will be totaled up and the amount will be refunded from the main cashbook as follow :
Petty cash book a/c. Dr
To cash book a/c.
In this way , the balance on the petty cashbook will alway be the same at the start of each period.this opening balance is known as the float or imp rest.
Very nice...
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