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What is Imprest Fund on Deposit?

Imprest Fund on Deposit is an account in which a minimum balance is maintained which can be used for paying small operating expenses. Another name for such fund is Petty cash account or petty cash fund. This account must be created with the consent of Treasury & Cash Management.

Money which is used to create this fund will not be treated as an expense; it is to be considered as a loan. Request for Establishment of Imprest Fund on Deposit is a form which is to be filled to create an Imprest Fund on Deposit.

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Rules regarding Imprest Fund on Deposit – Some rules which should be followed otherwise it will result in termination of the fund.

  • Charge of the fund should be on one person and accounting records related to such funds should be on another person’s charge.
  • In absence of the custodian a person acting as a custodian should establish who can take the charge on his behalf temporarily.
  • Books should be checked and balanced on monthly basis.
  • Unrelated expenses should not be paid out of such fund.
  • Such fund should not be used for providing loan.

Students often face problems regarding the rules and also the reimbursement of an Imprest Fund. If you are facing problems in your assignments and homework then you are just a click away from solving your problems. Click here for Imprest Fund on Deposit assignment help. If you have any query regarding your homework, you can visit us for Imprest Fund on Deposit homework help.

Related topics-

  1. Establishing new Imprest Fund on Deposits
  2. Procedures for Imprest Fund on Deposits
  3. Reimbursement of Imprest Fund on Deposits
  4. Changing / Closing of Imprest Fund on Deposits

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