Accounting for Petty Cash

Situation A: Approving Petty Cash

DR RFA – Imprest

CR Drawings Account

(to account for approved petty cash)

Situation B: Retiring Petty Cash (where there is a cash balance remaining)

Department Entries

DR IDC Department

CR RFA – Imprest

(to retire petty cash held during the year)

Treasury Entries

DR Bank Account

CR IDC Department

(to account for cash on hand balance lodged into the consolidated bank account)

Department Entries

DR Expenditure Account

CR RFA – Imprest

(to account for petty cash paid out)

Situation C: Retiring Petty Cash (where the petty cash is fully disbursed)

DR Expenditure Account

CR RFA - Imprest

(to retire petty cash held during the year)