Question
What do you understand by Imprest amount in petty cash book?
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Answer
Imprest amount is an amount of money given by the main cashier to the petty cashier in the beginning of a period. At the end of the period, the amount spent by the petty cashier gets reimbursed in such a manner, that he has the same amount of cash in hand in the beginning of next period. For example, if the main cashier gives an imprest amount of ₹ 1,000 to the petty cashier on April 01, 2011 and at the end of the month the petty expenses amount to be ₹ 850, which is spent by the petty cashier during the month. In this case, ₹ 850 will be reimbursed, so, that on May 01, 2011, the petty cashier will have ₹ 1,000 at his disposable to meet petty expenses for the next month.
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