Note: The representative will cancel the original Agreement to the outgoing custodian. Administration of the Petty Cash Imprest Fund The fund custodian has primary responsibility for the Petty Cash funds: Safekeeping Distribution Accounting The Petty Cash Fund and receipts are to be maintained in secured storage with access limited to the custodian at all times. A Petty Cash withdrawal request must be prepared for each reimbursement requested.
Imprest System Explained The most popular form of imprest is a petty cash account. Steps in the Imprest System The imprest system comprises of the following steps: A small cash fund, with a set amount of cash, is created.
It is documented in the ledger of the company. Any expenses charged by the small cash fund must have receipts reported. The fund is periodically replenished with receipts from disbursements to keep a set balance. The fund is carefully monitored for any inconsistencies between planned cash based on record and actual cash.
If there are some inconsistencies, they should be reviewed. Related Terms. Recent Terms. CA Assisted Services. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
We and our partners process data to: Actively scan device characteristics for identification. I Accept Show Purposes. Your Money. Personal Finance. Your Practice. Popular Courses. What Is Imprest? Key Takeaways Imprest refers to a type of cash account maintained by a company used to pay for small incidental or routine expenses.
A fixed account balance is established in the imprest account and refunded as needed when money is withdrawn for items like payroll, travel, or petty cash. Because of its small and fixed nature that is easily monitored, imprest discourages unauthorized or lavish expenses.
What is an imprest account used for? Where does the word "imprest" come from? How else is the term imprest used? Compare Accounts. Change of purpose will constitute misconduct. All applications for Special Advance shall normally be supported by not less than three pro-forma invoices from VAT Registered Suppliers and shall give details of the amount required and the purpose for which it is required. Imprest holders shall observe all regulations regarding the control of expenditure and disbursement of the University monies.
It is unlawful and irregular for imprest holders to use imprest monies for any purpose other than the purpose for which it was granted. Imprest holders are not absolved from the responsibility of accounting for their imprest until vouchers supporting all expenditure have been examined and found correct. Imprest holders may recoup their imprest from time to time when the amount is almost or completely exhausted.
All standing imprests shall be retired on or before the last day of the University's financial year for which they were issued.
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