Accounting ProcessQuestion 4994 of 84
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Detailed Solution & Explanation

Imprest System:  An amount is fixed which is given to petty cashier who meets expenses out of it & periodically or when the amount is spent, he takes reimbursement from main Cashier exactly equal to amount spent hence his cash balance again becomes equal to fixed imprest amount.  This is the upper limit of cash which petty cashier can have.  It is a version of Petty cash book only.  Ex. Imprest amount is fixed at 1,000. Petty cashier has spent 785 in that period, thus he has balance of 215. Now he will get reimbursement from main cashier 785, thus his balance will again become 1000.

About This Chapter: Accounting Process

Paper

Paper 1: Accounting

Weightage

25-30%

Key Topics

Journal, Ledger, Trial Balance, Cash Book, Rectification

This chapter covers Journal, Ledger, Trial Balance, Cash Book, Rectification and is part of Paper 1: Accounting in the CA Foundation exam.

View Official ICAI Syllabus

Exam Strategy Tip

This topic carries 25-30% weightage. Focus on understanding core concepts rather than memorizing.

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More Questions from Accounting Process

Accounting Standards can override the statute. [June 2024, 2 Marks]

What are the advantages of subsidiary books? [July 2021, 5 Marks; June 2024, 5 Marks]; [MTP Jan. 2025]

What are the importance of Journal? [June 2023, 5 Marks]

Double Entry System [Jan. 2025, 5 Marks]

Petty Cash Book [June 2022, 5 Marks]

Imprest System

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