Definition of Imprest System

This is a system usually used by most organisations to maintain the petty cash book. 

The imprest system states that the petty cashier is given a sum of money, usually from the chief cashier, from which payments are made.

This payment is called a Cash Float, whatever amount is spent by a petty cashier during a period must be given back to the petty cashier to maintain the float.

If a petty cashier is given an imprest, ₦500 on January 1, and by January 31 he paid out ₦450, the petty cashier’s balance is ₦50. The main cashier will reimburse the petty cashier ₦450 after checking the payment vouchers to restore the imprest.

The original amount given to the petty cashier is called an imprest.

For example: