Imprest Account – Purpose, Instructions and Main Facts!

Imprest account is a cash account (usually its amount varies from $50 to $200) which is susually used by the companies, seldom by individuals, to commit several office purchases such as various supplies, routine daily buying, postage and all that jazz. Imprest account implies a custodian to use the Imprest cash with reporting the expenses he made and replenishing them then with a help of the report receipts. These types of processes are performed at various Imprest cash establishments starting from school and finishing with administrative governmental units. Usually imprest account implies the purchases less than $100 that can be commited without general ledger petty cash system.

How to establish that kind of fund? Well, the administrative unit is to submit a special form to have this Imprest account. It is called Imprest Cash Account Request. This form needs to be signed by the person that aiming to create imprest cash account and then it should be approved by another person depending on the establishment – a director, dean and so on.

How to increase the fund of the Imprest account? In case you want to increase the Imprest cash fund you should also submit a special request – in this case Imprest Cash Increase Request that should have a document attached explaining why you need to increase it.

There are often cases when the petty cash custodian needs to be changed. In that case all the new Imprest account custodians need to fulfill a special Imprest Cash Agreement explaining the reasons of changing a custodian.

How does fund replenishment is performed? First of all, everybody should take into account the restrictions marked in the Imprest cash agreement he signed at the very beginning when creating the account. The expenditure form should be sent to the general accounting office with the paid invoices and vouchers showing the total sum of replenishment. These last two documents should be attached to the payment. If speaking about education departments it’s necessary to take into account that payments for alcoholic liquors, food and other stuff can’t be made from the Imprest account. There is also a system of reports required according to which he custodians need to make the Imprest cash account report in a ten days in the end of every month.

In case you want to close an imprest account or if the fund is not required anymore it should be obviously closed. In that case the custodian makes a report for all his payments and replenishes it. Then he gets the replenishment check and sends it to the general accounting office with a request to close the account. Pay your attention that the final Imprest account report should be made within 10 days at the end of the month when the fund is intended to be closed. The report should mark that the total cash float is zero.

As for the Imprest account form you need Blank forms BA-096 and BA-095. All the forms may be copied or purchased from Central Stores. Here are some main issues on completing the form.

If you make an Imprest cash account request you need the BA-096 form. There you put the stated Imprest cash account sum - $50-$100. Then you give an explanation on the reasons to open the account and state the types of expenses you are going to cover by this account. You surely put the number of a person that is going to deal with the account and the name of a department or establishment for which the Imprest account is made, indicating its address, telephone number, describing the frequency of the account usage and the anticipated date of its close.

For imprest cash agreement you need the BA-095 form. There the custodian must put a sign and date of the report presented to the office.

The Imprest cash account report made in the BA-098 form requires the custodian to put the ending report period date, the name of the establishment for which the Imprest account belongs, give the unit code and the organizational unit code. You should also put the date when the report is made, the amount of Imprest cash, the amount of hand cash, the amount of receipts, the amount of replenishing vouchers and give the payment authorization in the form Ap-002.

This report should be submitted in 10 days by the end of the month.

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the use of petty cashbook in the government offices running an imprest account in a manual ledger


2015-Aug-27 16:08 Ego [Lagos]

How can i treat or balance an imprest that is over the amount scheduled for the year: eg: given N100,000 but spent N117,000.

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