Imprest balance definition
/What is an Imprest Balance?
The imprest balance is the amount of cash stated in the general ledger for the petty cash account. This amount does not change. Instead, when cash is issued to replenish a petty cash box, the debit is to the expenses for which cash was paid, while the credit is to the general cash account. Thus, the imprest balance states the initial cash distribution to a petty cash account, and does not subsequently change unless the total amount of cash allocated to the petty cash box changes.
Presentation of an Imprest Balance
The amount of petty cash is rarely presented separately in a reporting entity’s balance sheet, because the balance is so small. Instead, it is aggregated into the cash line item, which likely includes the ending balances in all checking accounts and savings accounts held by the organization. An example of this presentation appears in the following balance sheet exhibit.