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JSS3: BUSINESS STUDIES - 1ST TERM

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  1. Office Procedures | Week 1 & 2
    3Topics
    |
    1 Quiz
  2. Imprest Account | Week 3
    2Topics
    |
    1 Quiz
  3. The Role of Wages and Salaries Unit | Week 4
    3Topics
    |
    1 Quiz
  4. Store Records | Week 5
    4Topics
    |
    1 Quiz
  5. Office Equipment | Week 6
    3Topics
    |
    1 Quiz
  6. Advertising | Week 7
    3Topics
    |
    1 Quiz
  7. Transport | Week 8
    6Topics
    |
    1 Quiz
  8. Communication | Week 9
    4Topics
    |
    1 Quiz
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In maintaining the imprest account, a fixed sum of money called cash float is given to the petty cashier, at the beginning of the period, for minor expenses.

For example, if the petty cashier was given ₦2,000 on 1st January, and on 31st of January, he or she has paid out ₦1,450. The petty cashier’s balance will be ₦550 with the imprest system; he will be reimbursed ₦1,450 paid out. The amount, together with his balance, will be equal to the cash float of ₦2,000, for the Month of February, etc.

Balance and Restoration of Imprest

Using the imprest account, at any given time, the cash in hand, plus the amount paid out on the approved vouchers, should be equal to the cash float given to the petty cashier.

Example

Post the following expenses into the petty cash book using analysis columns for pen, stamps, transport, and repairs. Amount paid is restored on March 31.

Mar. 1 Cash float received ₦1, 500
Mar. 3 Transport expenses N160, stamps ₦125
Mar. 7Pen N135, Office repairs ₦150
Mar. 14 Transport fare N145, servicing the typewriter ₦165
Mar. 21Stamps ₦122, Pen ₦128
Mar. 30  Pens ₦133

Solution:

Petty Cash Book

Petty cashbook

Note:

The receipt column records the cash float received.

The total amount columns record the value of all the expenses paid out.

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