Control petty cash with the imprest system
Reimburse petty cash to a fixed float and weigh manual and digital recording methods against their controls.
Cambridge IGCSE Accounting 0452 / (9–1) 0985, 2027–2029 Version 1. These lessons follow the 2027–2029 syllabus only; the separate 2026 syllabus update is not yet mapped. Written practice is self-checked, not an official Cambridge grade. Full timed-paper practice and human subject-teacher review remain pending.
Before you begin
- No previous accounting study is assumed. Keep the business, transaction and accounting period in view, and distinguish a resource, a claim and a performance result.
Work on paper. Try each question before revealing help, and explain why your method works.
Quick readiness check
What is the aim of reimbursing an imprest petty-cash float?
What you will learn
- Calculate a petty-cash reimbursement under the imprest system
- Explain why vouchers support small cash payments
- Compare manual and digital original-entry methods with limits
Restore the float, not an arbitrary amount
Under the imprest system, the petty-cash float is set at an agreed amount. The cashier records supported payments on vouchers; the reimbursement restores the float to its set amount, normally by the total valid vouchers.
If a $200 float has $46 cash remaining and valid vouchers total $154, the reimbursement is $154. Count the cash and compare it with the float and vouchers; an unexplained difference needs investigation.
Select a recording method with controls
Manual original entry can be inexpensive, visible and usable during some outages, but it may be slower to total and search, and records can be lost or misread. Digital entry may speed processing, validation and retrieval, but depends on devices, access, correct data and secure backups.
Neither method prevents every error. Use numbered vouchers or transaction IDs, authorisation, regular reconciliation and secure storage. Keeping cash at business premises can make small purchases convenient but creates loss, theft and handling risks.
Pause and explain
A $240 float has $61 cash and $169 valid vouchers. What is the unexplained difference?
Worked example
The imprest float is $300. Cash remaining is $72 and valid vouchers total $221. How much should be reimbursed, and what difference should be investigated?
Show the worked solution
- Expected cash plus vouchers = 72 + 221 = $293.
- The evidence supports a $221 reimbursement, which leaves cash at $293.
- The target float is $300, so the unexplained difference is 300 − 72 − 221 = $7.
Answer The valid vouchers total $221, so reimburse $221. The cash-plus-voucher total is $293, leaving a $7 shortage to investigate; do not hide it by reimbursing $228 without evidence.
Try a topic test
Choose Easy, Normal or Difficult. Save your answers and open worked review after finishing.
Test this topic →From guided practice to a new situation
Write your answer and reasoning first. Use a hint only if you are stuck. The model solution is for self-checking; your written work is not automatically marked.
A $180 petty-cash float has $42 cash and vouchers for $138. Calculate the reimbursement and verify the float.
Give me a hint
Add the remaining cash and valid vouchers.
Compare my reasoning
- Voucher total is $138.
- Reimburse $138.
- Check: 42 + 138 = $180.
Reimburse $138; cash plus vouchers restores the $180 float.
Look for these in your work
- Voucher total identified
- Reimbursement correct
- Float reconciled
A $250 float has $55 cash and valid vouchers of $188. Find the shortage and describe the response.
Give me a hint
Compare cash plus vouchers with the fixed float before reimbursing.
Compare my reasoning
- Cash plus vouchers = 55 + 188 = $243.
- Shortage = 250 − 243 = $7.
- Reimburse supported vouchers $188 and investigate the $7 difference under the business control procedure.
Reimburse $188 and investigate the unexplained $7 shortage; the voucher total does not support an extra $7 payment.
Look for these in your work
- Combined total correct
- Shortage correct
- Control response appropriate
A business is deciding whether to record petty cash on paper or in an app. Recommend controls that matter with either method and one trade-off for each.
Give me a hint
Separate method convenience from the controls that protect the cash and record.
Compare my reasoning
- Both methods need authorised payments, numbered evidence, secure storage and regular reconciliation.
- Paper can work simply and offline but is slower to total and easier to lose or misread.
- An app can speed entry and retrieval but needs reliable access, correct setup, backups and protected accounts.
Either method needs authorisation, vouchers and reconciliation. Paper may be simpler offline but harder to search; an app may be faster but depends on access, security and backup controls.
Look for these in your work
- Controls apply to both
- Paper trade-off explained
- Digital trade-off explained
Common mistakes
- Reimbursing the full float instead of the voucher total
- Ignoring a cash and voucher discrepancy
- Assuming a digital system makes authorisation and reconciliation unnecessary
What can you explain now?
A $150 imprest float has $38 cash and $112 in valid vouchers. What reimbursement restores the float?
Compare with the explanation
$112
The voucher total is 112 and 38 + 112 = 150.
After trying it yourself, choose your next review. This is your self-assessment.
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Make it stick
Under imprest, why should reimbursement match the valid voucher total?
If you needed the solution, close it and solve the problem again from a blank page. A correct answer is stronger when you can explain the reason for each step.