Imprest system
What is the imprest system?
The imprest system is a way to run petty cash.
The float starts at a fixed amount, called the imprest amount.
At the end of the period it is topped back up to that amount. The top-up always equals what was spent.
Example
The imprest amount is £100.00. In one week £37.50 is paid out. The tin holds £62.50 in cash and vouchers for £37.50, so the top-up is £37.50.
Why it matters
Every pound that leaves the tin is replaced by a voucher. So at any moment the cash in the tin plus the vouchers should equal the imprest amount.
Practise it
Practise it nowThe cash book and petty cash
Ledger Drill is practice, not tax or accounting advice. If this looks wrong, tell us at [email protected].