Petty cash imprest system allows only to replenish the spending. So, if you start the month with $100 in your petty cash float and spend $90 of that cash in the month, an amount of $90 will be then placed in your petty cash float to bring the balance of your petty cash float back to $100. The replenishment is credited to the primary cash account and the debits will go to the respective expense accounts, based on the petty cash receipts.
Read more about this topic: Imprest System
Famous quotes containing the words petty, cash and/or system:
“But each day brings its petty dust
Our soon-choked souls to fill,
And we forget because we must,
And not because we will.”
—Matthew Arnold (1822–1888)
“The Church has always been willing to swap off treasures in heaven for cash down.”
—Robert Green Ingersoll (1833–1899)
“The intellect is vagabond, and our system of education fosters restlessness. Our minds travel when our bodies are forced to stay at home. We imitate; and what is imitation but the travelling of the mind?”
—Ralph Waldo Emerson (1803–1882)