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What is the difference between an Imprest and Non-imprest
petty cash account?
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Answer / eilynn
In a non-imprest system, a fixed amount is issued every
month.
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
by the chief cashier.
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.
So, at all times, you can check how much should be left in
the pretty cash float by deducting the amount spent from
the opening petty cash float.
| Is This Answer Correct ? | 82 Yes | 13 No |
Answer / nagesh
petty cash fund is by definition an imprest fund. There is
no such thing as non imprest petty cash. If you haven't set
aside money into petty cash (imprest is "lending" money to
a fund to pay future expenses), then it isn't imprest.
And if you don't have any cash in the fund, petty cash
doesn't exist. Requirements are such that there need to be
specific controls surrounding petty cash.
If not, there is room for abuse and fraud that will not be
caught by a normal bank reconciliation process. Basically
additional controls need to be established.
| Is This Answer Correct ? | 18 Yes | 45 No |
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