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Q: How do you calculate imprest amount?
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What is imprest amount in accounts?

The imprest account is a petty cash account.

What are the advantages of a Imprest system for petty cash?

An Imprest system of petty cash is used for more control over cash in hand. In an Imprest system, the amount in hand plus the amount of all receipts should be equal to petty cash balance. If at any time cash in hand and receipts do not equal the fixed amount of petty cash, then investigation should be done about the discrepancy.

Explain the petty cash book and how the imprest system works?

Petty cash us cash held in the form of coins and notes. It is used to pay the small incidental expenses incurred by a business. Imprest system which is based on a pre-set float being maintained the imprest amount.

What does restore the petty cash imprest mean?

Involves having a fixed sum of amount ,which will revove for a financial year.

How are you use of imprest in tally?

Imprest Account in under loan and advance group

Imprest Fund Imprest System?

The imprest system is the more popular system of petty cash. Under the imprest system, a fixed sum is established as a petty cash for a fixed period to meet the business requirement. The petty cashier is given a certain amount of cash, usually at the beginning of a month (could also be weekly or daily, depending on the size and type of business). At the end of the period, the petty cashier submits the accounts of expenses keeping surplus amount himself. Now, the head cashier gives to the petty cashier another sum for the reimbursement of the fund which equals the amount spent by him during the period. Thus, every time the petty cashier begins the next period with the same amount. Preffered method

What is the nature of the imprest system?

An imprest system is a system using loans as control against fraud and theft. The most common imprest system known is the petty cash system.Petty cash imprest systemThe Petty Cash Imprest System works on the basis that you only replenish what you have spent. So if you start the month with $100 in your petty cash float and spend $90 of that cash in the month, an amount of $90 will be then placed in your petty cash float to bring the balance of your petty cash float back to $100.Why use the imprest systemIn this example the maximum amount of petty cash that can be issued (spent) is $100. You can only spend what you have and you are only replenished with what you spend, in this case $90.In a non imprest system where a fixed amount is issued every month e.g. $100 every time cash is required, there is no incentive to ensure all money issued has been documented because when money is all spent a cheque for a fixed amount is issued. It is much more difficult to reconcile a non imprest system as you never know how much exactly should be in the float.In an imprest system the amount requested is documented. The documentation being the petty cash dockets and their associated receipts or invoices. So at all times you can check how much should be left in the petty cash float by deducting the amount spent from the opening petty cash float.How petty cash imprest system worksThe imprest system ensures that you must document how the petty cash is spent. In a petty cash system, petty cash dockets are written for each amount issued. So when all of these dockets are totalled at the end of the month and deducted from the opening petty cash float, the calculated value must agree with what is left in the petty cash float. Under the imprest system, only that which is recorded as spent is replenished. Any shortfalls may have to be replenished by the guardian, usually a bookkeeper, of the petty cash float from their own personal resources.For the source and more detailed information concerning your request, click on the related links section ( indicated below.

Can we use another system aside from imprest system?

no we don't have any other system other than imprest system

What is an imprest account?

(i) An account into which a fixed amount of money is placed for the purpose of making change or minor disbursements. (ii) An imprest account is one that always has the same balance; an exact amount of cash in deposited into the account for a known specific future purpose (such as an upcoming payroll), and the same amount leaves the account when the funds for that purpose are expended. (iii) In the United Kingdom, a record of the transactions of a type of petty cash system. An employee is given an advance of money, an imprest, for incidental expenses and, when most of it has been spent, he or she presents receipts for the expenses to the accounts department and is then reimbursed with cash to the total value of the receipts.

Who manages an imprest account?

An imprest account is an account which allows the sum of money to be given as an advance payment to someone to carry out an expenses as the case may be. This type of account is usually retired in which the person who spent the money will analyse how the money was spent.

Identify advantages of imprest system?

There are many advantages of imprest system. One is that the cash is limited so the chances of losing money are limited. This type helps in managing and accounting for petty cash.

How to you calculate bank guarantee amount?

To calculate the bank guarantee amount the amount of deposit in the bank account is usually considered.