What is the Imprest Amount?

The imprest amount is the fixed amount of cash that is presumed to be located in a petty cash box. For example, the initial funding of a petty cash box is $300, and this amount is recorded in the corresponding general ledger account for petty cash. This amount does not change in the general ledger, even though the amount of cash in the petty cash box will gradually decline as it is paid out and replaced with receipts. When the petty cash box is replenished, the cash comes from the regular cash account, rather than the petty cash account, so the imprest amount remains the same.

Characteristics of an Imprest Amount

The key characteristics of an imprest amount are as follows:

Fixed amount. An imprest amount involves a specific, pre-determined sum. The amount does not change unless authorized adjustments are made.
Replenishment system. The fund is replenished periodically to maintain the fixed imprest amount. Replenishment is based on the vouchers, receipts, or records of expenses incurred.
Controlled amount. The imprest amount is typically used for small, routine, or incidental expenses (e.g., office supplies, minor repairs).
Periodic reconciliation. Regular reconciliation ensures that the balance, plus the receipts, matches the original imprest amount.
Prevents overspending. The fixed nature of the imprest amount limits overspending and ensures better financial control.