What do you mean by the Imprest System followed by business concerns for managing petty cash expenses?

As soon as a fixed amount is spent, the Chief Cashier again pays the required sum to the Petty Cashier

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Under this system the Petty Cashier receives from the Chief Cashier a fixed Sum of money for a fixed period of time

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Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Chief Cashier to the Petty Cashier

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None of the above

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Solution

The correct option is C
Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Chief Cashier to the Petty Cashier

This amount plus the amount lying unspent with the Petty Cashier will be equal to the imprest cash.

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Similar questions

What do you understand by imprest amount in petty cash book?

Q. Imprest system of Petty Cash book is system in which head cashier first estimates the total petty expenses of a particular period say month or fortnight and estimated amount is given to petty cashier in advance to meet petty expenses of particular period.

Q. Answer in one sentence only :

Write the meaning of imprest system of petty cash book.

Prepare a Petty Cash Book on the Imprest System from the following:

2017
April 1	Received ₹ 10,000 for Petty Cash.
3	Paid Cartage ₹ 800.
4	Paid Bus Fare ₹ 400; Speed Post ₹ 200.
6	Paid for Stationery ₹ 700.
7	Paid for Courier Services ₹ 300.
9	Paid for Taxi fare ₹ 800; Wages ₹ 300.
10	Paid for Wages ₹ 400; Charity ₹ 500
11	Paid for Newspaper bill ₹ 600.
12	Paid for soap ₹ 320; Speed post charges ₹ 300.
13	Paid for Postage ₹ 780.
14	Paid for Repairs of Chairs ₹ 500.
15	Paid for Refreshment to customers ₹ 900.

Q. Sri R maintains a Columnar Petty Cash Book on the Imprest System. The imprest amount is ₹ 5,000. From the following information, show how his Petty Cash Book would appear for the week ended 12th September, 2017:

2016		₹
Sept. 7	Balance in Hand	1,349
	Received cash reimbursement to make up the imprest
	Postage	123
	Stationery	321
	Entertainment	54
Sept. 8	Travelling and conveyance	126
	Miscellaneous expenses	11
	Entertainment	72
Sept. 9	Repairs	1,567
Sept. 10	Postage	174
	Entertainment	127
	Travelling	673
Sept. 11	Stationery	41
	Entertainment	12
Sept 12	Miscellaneous expenses	201
	Travelling	51
	Postage	483
	Repairs	30

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What do you mean by the Imprest System followed by business concerns for managing petty cash expenses?

The correct option is C Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Chief Cashier to the Petty Cashier This amount plus the amount lying unspent with the Petty Cashier will be equal to the imprest cash.

The correct option is C
Under this system, the total petty expenses for a particular period are estimated and that amount is advanced by the Chief Cashier to the Petty Cashier

This amount plus the amount lying unspent with the Petty Cashier will be equal to the imprest cash.