Need Help? About us. Download link sent. Category Corporate Finance and Accounting. Imprest Reviewed by Annapoorna Updated on Nov 11, What is Meant by Imprest? 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. Recent Posts. Unreplied Threads. Post New Topic. Trending Tags. Member Strength 35,28, and growing.. Get latest updates Submit. Our Network Sites. India's largest network for Finance Professionals. CAclubindia India's largest network for finance professionals. Each application shall, however, be considered on its own merit. Imprest Holders to Keep a Register All imprest holders shall keep a Register showing the amount received as imprest and how it has been used.
The Register of Imprest holders are also subject to examination by the Director of Finance. Special Advance There are two types of Special Advance; namely: Special Advance Granted for Purposes other than Research: This must be accounted for in full within one month or when the service has been performed whichever is earlier Special Advance for Research: This must be accounted for through the Head of Department concerned to the Director of Finance or the approving body within which the activity is completed.
Consideration for Special Advance Application for Special Advance shall be considered only: Where credit facilities are not obtainable from the supplier of the goods or services Where an item or service is urgently required and can only be paid for by cash Approved Special Advance shall only be used for the purpose for which approval was given.
Responsibility of Imprest Holders Imprest holders shall observe all regulations regarding the control of expenditure and disbursement of the University monies.
Recoupment and Retirement of Imprest Imprest holders may recoup their imprest from time to time when the amount is almost or completely exhausted. 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 A fixed account balance is established in the imprest account and refunded as needed when money is withdrawn for items like payroll, travel, or petty cash.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. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.
Investopedia does not include all offers available in the marketplace. Petty cash is a small amount of cash on hand used for paying expenses too small to merit writing a check. Learn how to balance petty cash in accounting.
What Is a Cash Allowance? A cash allowance is an expense that is repaid immediately in cash, instead of being reimbursed at a later date. Incidental Expenses IE Definition Incidental expenses IE , also known as incidentals, are tips and other small costs ancillary to a business expense.
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