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The imprest system is a form of financial accounting system. The most common imprest system is the petty cash system. The base characteristic of an imprest system is that a fixed amount is reserved, which after a certain period of time or when circumstances require, because money was spent, it will be replenished.
That is, the Petty Cashier will have again the fixed sum in the beginning of the next period. This system is known as Imprest System of Petty Cash Book. For instance, a business estimates that a sum of Rs 500 is required to meet small expenses in the business for one week. This amount is given to the Petty Cashier. At the week end or earlier, the Petty Cashier spent Rs 480 and needs more cash.