What is the difference between imprest and petty cash? (2024)

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Standard XII

Accountancy

Preparing CFS-Indirect Method

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Imprest is a cash account on which a business relies for paying off small or minor expenditures and the amount is replenished by the cashier who ensures that a fixed balance is maintained.
Petty cash is the cash that is used for the purchase of office supplies, refreshments etc. It is the cash that is used for performing minor expenditures in a business.
Also read:
Cash Book
Cash Flow Statement
Ledger in Accounting
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