What is an imprest fund?
What Is Imprest? An imprest is a cash account that a business relies on to pay for small, routine expenses. Funds contained in imprests are regularly replenished, in order to maintain a fixed balance. The term “imprest” can also refer to a monetary advance given to a person for a specific purpose.
What is the purpose of imprest fund?
An imprest fund is a small amount of cash that is set aside for use in paying for incidental expenses. The fund is typically stored in a box or drawer, and is controlled by a custodian who has the authority to make payments.
What are the uses of imprest?
The Imprest system is an accounting system that’s used to track how your business is spending cash. In most cases, Imprest systems are used to account for petty cash (a small amount of money used for expenditure on smaller items, i.e. office supplies, catered lunch, cards for customers, etc.).
What are the two classes of imprest?
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.
Why did I get a refund imprest fund check?
It is used when issuing cheques is not convenient to cover smaller transactions. The fund is typically reimbursed by money from the primary bank account of the organisation after these outgoing expenses are paid out.
How does the Imprest system work?
An imprest system of petty cash means that the general ledger account Petty Cash will remain dormant at a constant amount. If the amount of petty cash is $100, then the Petty Cash account will always report a debit balance of $100. The petty cash custodian will cash the check and add the amount to the other cash.
What is the refund Imprest fund?
What is Meant by Imprest? An imprest is a cash account that a business relies on to pay for routine, small expenses. Cashiers regularly replenish funds in the imprest, while ensuring a fixed balance is maintained. The term “imprest” can also mean a monetary advance that is given to a person for a specific purpose.