Content Beyond Syllabus - Petty Cash Book and Imprest System 

Session Plan : Petty Cash Book and Imprest System 

Introduction (5 min): Define Petty Cash Book; explain need for recording small cash expenses.

Concepts (10 min): Types of petty cash book – simple & analytical; introduction to Imprest System.

Illustration (15 min): Prepare a petty cash book under Imprest System with sample expenses (postage, stationery, bus fare).

Class Activity (10 min): Students record transactions in a petty cash book.

Recap & Q/A (5 min): Discuss advantages of Imprest System in business.

Lecture Material : (PDF, PPT)

Petty_Cash_Book_Imprest_System.pptx 

Learning Material (IV Quadrant Approach)

(Q1) : Text and Image based Content (PDF/Image Formats)

1. Petty Cash Book

• A subsidiary book maintained for recording small, recurring expenses such as postage, stationery, bus fare, refreshments, etc.

• Helps reduce burden on the main Cash Book.

Types:

1. Simple Petty Cash Book – Records all small expenses in one column.

2. Analytical (Columnar) Petty Cash Book – Provides separate columns for each type of expense (postage, conveyance, stationery, etc.).

2. Imprest System

• A fixed amount is given to the petty cashier at the beginning of a period (say ₹2,000 for a month).

• Petty cashier makes payments for small expenses and records them.

• At the end of the period, the petty cashier submits vouchers and the total spent is reimbursed → restoring the balance to the original imprest amount.

✅ Example: If imprest = ₹2,000 and expenses during the month = ₹1,450, then the main cashier reimburses ₹1,450 so the petty cashier again has ₹2,000 at the start of next month.

3. Specimen Format (Analytical Petty Cash Book)

Date Particulars V. No. Total Postage Stationery Conveyance Misc. Balance

1/4 Cash Received – 2,000 – – – – 2,000

2/4 Bus Fare 101 50 – – 50 – 1,950

3/4 Postage 102 100 100 – – – 1,850

… … … … … … … … …

 4. Advantages of Petty Cash Book & Imprest System

• Saves time and reduces workload of the main cashier.

• Improves control over petty expenses.

• Prevents misuse of cash, as every payment is supported by a voucher.

• Provides ready classification of small expenses.

(Q2) : Video Based Content (Youtube):www.youtube.com/watch?v=5vz7e3eKxpY 

(Q3) : Formative Assessment (Google Form/Any Other Online Quiz Platform): forms.fillout.com/t/97cvqPxcAQus