So, now you know what petty cash is, so, what is the imprest petty cash? Imprest petty cash system means that the general petty cash ledger account stays inactive...
Thus, the general ledger petty cash account doesn’t take part in the replenishing process...
He gets the cash from the certain company checking account getting the cash sum similar to the general ledger account cash amount...
That kind of vouchers should have an area for the date, the paid amount, the space for the indication of the name of the person that takes the cash from the petty cash fund, they often are numbered for better control over the petty cash operations...
Well, it is a form used as a docket showing the payment made from a petty cash account...
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Usually imprest account implies the purchases less than $100 that can be commited without general ledger petty cash system...
There are often cases when the petty cash custodian needs to be changed...
If you make an Imprest cash account request you need the BA-096 form...
The report should mark that the total cash float is zero...
There you put the stated Imprest cash account sum - $50-$100...
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The main idea of these petty cash accounts is a sum taken from the general cash in order to make small purchases in currency...
After the request is approved the general ledger imprest account is created – usually it sets up a bank account and is a “mother” account feeding the cash account...
The petty cash system main basis in the replenishment of the expenditures you have spent...
Thus you have the maximal petty cash sum which you can’t exceed and which you can use and spend by the end of the month before replenishing it in the end...
And then comes its term – petty cash that is so popular today on the internet...
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The main system petty cash term implies the Imprest general ledger account to be inactive as far as a set amount is concerned...
In other words, the main issue of the Imprest system work is the documentation of the way your petty cash is spent...
What are the system main advantages and why is it worth using it? As it was stated below the maximal petty cash amount is $100 so you can spend only what you have and replenish the sum you’ve spent – that is $90...
It is quite simple as the special dockets are written for the every petty cash issued amount...
At the end of the month all of these dockets are summed up in the total by being deducted from the petty cash float opening showing the amount left in the petty cash float...
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What are the advantages of a petty cash Imprest system? First of all, it is an easy way to cover the simple cash expenses without indicating them in the general cash book...
What is to replenish the imprest system petty cash? So, that means that you cover all the expenses for the cash receipts that were taken against the cash and cut your check for the expenses amount...
Otherwise in case you can not do it it should be replenished by a guardian that is usually presented by a bookkeeper that can do take the expenses from his own personal account petty cash float...
At the end of the month all these documents are totaled showing the sum left in the petty cash float...
S long as the balance of the mount is adequate your petty cash account will not have the problems...
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People choose this system of loans because of a great possibility to pay in cash without using their general ledger account...
All the Imprest funds are kept in a record with the help of documentation presented by the petty cash dockets or receipts...
There is also a non imprest system of a petty cash where there is no such a rule with a fixed amount that is spend every month...
Thus, the exact time doesn’t matter as you can check the exact sum left in your petty cash float anytime you want...
Petty cash Imprest funds consider that the custodian should document the way he uses his petty cash...
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