Imprest and Voucher Systems
An imprest system is a method of controlling small cash expenditures by setting up a fund at a fixed amount. A petty cash fund, one example of the application of an imprest system, is established by a debit to Petty Cash, and a credit to Cash. It is replenished by debits to various expense or asset accounts and a credit to Cash. Each expenditure should be supported by a petty cash voucher.
A voucher system is any system that gives documentary proof of and written authorization for business transactions. It consists of authorizations (vouchers), voucher checks, a special journal to record the vouchers (voucher register), and a special journal to record the voucher checks (check register).
The five steps in operating a voucher system are:
- preparing the voucher,
- recording the voucher,
- paying the voucher,
- posting the voucher and check registers, and
- summarizing unpaid vouchers.