AccountancyCBSE Class 11 · Recording of Transactions - II

Petty Cash Book Class 11: Imprest System, Analytical Format and Reimbursement

Updated 17 October 2026 · Fact-checked

The petty cash book records small, frequent expenses such as postage, stationery and conveyance, kept by a petty cashier. Under the imprest system the head cashier gives a fixed amount (the imprest) at the start of a period and reimburses exactly the amount spent at the end, restoring the imprest. The analytical (columnar) petty cash book classifies each payment under its head, and the totals are posted to the ledger.

Notice that the head cashier reimburses the amount spent (₹3,800), not the balance, so the petty cashier starts again with the full ₹5,000.

Illustration drawn for QuestionBuddy.

Understand Petty Cash Book: Imprest System, Analytical Columns and Reimbursement

Purpose. The head cashier should not record every small payment. The petty cashier does so in the petty cash book, leaving the main cash book for large items.

Imprest system.

A fixed sum, the imprest, is given at the start of the period, e.g. ₹5,000.
The petty cashier pays small expenses against vouchers.
At the end of the period the head cashier reimburses the amount spent, so the cashier begins the next period with the full imprest again.
Amount to be reimbursed = Total payments in the period (not the balance).

Format. Receipts column on the left (opening balance, amount received from the head cashier), then Date, Particulars, Voucher No., Total Payment column and several analysis columns (Postage, Stationery, Conveyance, Refreshments, Miscellaneous, and a ledger column for personal-account payments). A payment is entered once in the total column and once in the matching analysis column.

Totals and checks. The sum of the analysis column totals must equal the total payment column. Balance = Receipts − Total payments. The closing balance is the unspent cash; next period begins with opening balance + reimbursement = imprest.

Posting. At the end, each analysis total is debited to its expense account in the ledger and the reimbursement is credited to Cash (or Bank) account of the main cash book. Since payments are recorded for analysis only once, the petty cash book acts as a subsidiary book, and the main cash book records only the reimbursement.

Advantages. Saves the head cashier's time, keeps the main cash book short, gives a ready analysis of petty expenses and places a ceiling on possible misuse.

Common slip. Giving the head cashier's total as the balance: the amount reimbursed is not the balance but the *total spent*.

Petty Cash Book: Imprest System, Analytical Columns and Reimbursement: key facts

Imprest: Fixed advance at the start
Reimbursement at the end equals total spent
Closing balance plus reimbursement equals imprest; Restores the imprest.
Checks: Sum of analysis columns equals total payment column | Receipts less payments equals balance; Cross-check before posting.
Posting: Analysis totals debited to expense accounts | Reimbursement credited to cash or bank in the main cash book; Subsidiary book.

How to answer Petty Cash Book: Imprest System, Analytical Columns and Reimbursement questions

Petty cash questions are mostly arithmetic with a clear layout.

1Enter the opening balance and the imprest received on the receipts side.
2Enter each payment in the total column and in its analysis column.
3Total all columns; check the analysis totals add up to the total payment column.
4Find the balance (receipts less payments) and the amount to be reimbursed (total payments).
5Carry the balance down and show the reimbursement received at the start of the next period.

Petty Cash Book: Imprest System, Analytical Columns and Reimbursement in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

A school office

Suppose a school gives its clerk ₹5,000 as imprest for the week.

If ₹3,100 is spent, how much is the clerk reimbursed and what is the balance?

Try it first, then show the solutionSolution

Total spent = ₹3,100, so reimbursement = ₹3,100.
Balance in hand = 5,000 − 3,100 = ₹1,900.
Opening balance of the next week = 1,900 + 3,100 = ₹5,000.

Answer: Reimbursement ₹3,100; closing balance ₹1,900; next opening ₹5,000.

Memory hook: Spend, refill, start full.

Tricks to remember Petty Cash Book: Imprest System, Analytical Columns and Reimbursement

Short memory aids. Say each one aloud once, then use it on a question the same day.

Refill what you spent
Reimburse total spent, not the balance.
Use it when: Imprest.
Columns must agree
Analysis columns add up to the total payment column.
Use it when: Check.

Petty Cash Book: Imprest System, Analytical Columns and Reimbursement: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Imprest meaning · 1 mark · MCQBoard level

Under the imprest system the petty cashier receives:
(a) the whole cash balance
(b) a fixed sum at the start of a period
(c) a different sum every day
(d) only cheques

Try it first, then show the solutionSolution

A fixed sum given at the start, restored by reimbursement.

Answer: (b) a fixed sum at the start of a period

Example 2: Why is it analytical? · 3 marks · Short answerBoard level

Why is the analytical petty cash book called a columnar book? State two advantages of the imprest system. (3 marks)

Try it first, then show the solutionSolution

It has separate columns for each kind of expense, so every payment is classified under its head as it is recorded.
Advantage 1: the head cashier is relieved of small payments.
Advantage 2: the exact spending on each head is known and control over small expenses is easier.

Answer: Columns per expense head; saves time and gives control.

Example 3: Weekly analytical petty cash book · 5 marks · Long answerHarder board level

The petty cashier received an imprest of ₹5,000 on 1 January. During the week: stationery ₹450; postage ₹300; conveyance ₹600; refreshments ₹700; cartage ₹250; stationery ₹380; conveyance ₹420. Prepare the analytical totals, find the amount to be reimbursed and the closing balance, and state the opening balance of the next week. (5 marks)

Try it first, then show the solutionSolution

Total payments = 450 + 300 + 600 + 700 + 250 + 380 + 420 = ₹3,100.
Analysis: Stationery 830; Postage 300; Conveyance 1,020; Refreshments 700; Miscellaneous (cartage) 250; total 830 + 300 + 1,020 + 700 + 250 = ₹3,100.
Closing balance = 5,000 − 3,100 = ₹1,900.
Reimbursement = ₹3,100; next week opens with 1,900 + 3,100 = ₹5,000.

Answer: Total ₹3,100; reimbursement ₹3,100; balance ₹1,900; next opening ₹5,000.

Example 4: Reimbursement and journal entry · 4 marks · Short answerHarder board level

A petty cashier with an imprest of ₹6,000 spent: postage ₹640; stationery ₹1,210; travel ₹1,980; refreshments ₹840; miscellaneous ₹180. Find the total spent, the balance in hand and the amount to be reimbursed. Show how the analysis totals are posted. (4 marks)

Try it first, then show the solutionSolution

Total spent = 640 + 1,210 + 1,980 + 840 + 180 = ₹4,850.
Balance = 6,000 − 4,850 = ₹1,150.
Reimbursement = ₹4,850 (cash book credit).
Posting: debit Postage 640, Stationery 1,210, Travelling 1,980, Refreshments 840, Miscellaneous 180 in the ledger.

Answer: Spent ₹4,850; balance ₹1,150; reimbursement ₹4,850.

Example 5: A mismatch · 4 marks · Short answerHOTS / competency

On 7 January the cash actually in the petty cashier's box was ₹1,700, while the book of the week above showed a balance of ₹1,900. Find the difference, give two reasons it might arise, and say what the head cashier should do. (4 marks)

Try it first, then show the solutionSolution

Difference = 1,900 − 1,700 = ₹200 short.
Reasons: a payment made but not entered (or without a voucher), or an arithmetic slip in a column.
The head cashier should check vouchers against the book and total the columns again; an unexplained shortage should be recorded and reported rather than adjusted silently.

Answer: Shortage ₹200; check vouchers and totals; report the shortage.

Where students lose marks in Petty Cash Book: Imprest System, Analytical Columns and Reimbursement

The slips examiners see most often, and what to write instead.

Mistake: Reimbursing the balance instead of the total spent
Confusing balance and expenditure.
Wrong working
Reimbursement = 1,900.
Right working
Reimbursement = total spent = ₹3,100.
Do this: The imprest is restored by repaying what was spent.
Usually costs: 1 mark
Mistake: Entering a payment only in the analysis column
Forgetting the total column.
Wrong working
Stationery 450 in analysis column only.
Right working
Stationery 450 in the total payment column and in the stationery column.
Do this: Every payment appears twice in the book.
Usually costs: 1 mark
Mistake: Opening balance of next period wrong
Ignoring the reimbursement.
Wrong working
Next opening = 1,900.
Right working
Next opening = 1,900 + 3,100 = 5,000.
Do this: Opening balance plus reimbursement equals the imprest.
Usually costs: 1 mark

Exam tips

Show the check: analysis totals equal the total payment column.
Show reimbursement as a receipt dated the last day of the period.
Name the expense accounts where the analysis totals are posted.
State the next period's opening balance.

Practice questions on Petty Cash Book: Imprest System, Analytical Columns and Reimbursement

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
The amount reimbursed to the petty cashier under the imprest system equals:
(a) the closing balance
(b) the total spent in the period
(c) the opening balance
(d) the imprest amount in all cases
Hint
Restores the imprest.
Answer
(b) the total spent in the period
Q2 · 3 marks · Short answerHarder board level
A petty cashier has an imprest of ₹4,000. Payments of the month: postage ₹320; stationery ₹780; conveyance ₹1,150; miscellaneous ₹290. Find the total spent, the balance and the amount to be reimbursed. (3 marks)
Hint
Add the heads.
Answer
Total = 320 + 780 + 1,150 + 290 = 2,540. Balance = 4,000 − 2,540 = ₹1,460. Reimbursement = ₹2,540.
Q3 · 3 marks · Short answerHarder board level
The petty cash book opened on 1 April with ₹800 in hand and the head cashier gave ₹4,200 to make up the imprest. Find the imprest, then the opening balance of the next period if the petty cashier spent ₹3,900 and was reimbursed. (3 marks)
Hint
Imprest = opening balance + advance.
Answer
Imprest = 800 + 4,200 = ₹5,000. Balance at end = 5,000 − 3,900 = ₹1,100. After reimbursement of ₹3,900 the next opening balance is 1,100 + 3,900 = ₹5,000.
Q4 · 1 mark · Assertion-reasonHarder board level
Assertion (A): In the analytical petty cash book, the totals of the analysis columns must equal the total of the payments column.
Reason (R): Every payment is entered once in the total column and once in an analysis column.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
Cross-check.
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q5 · 4 marks · Short answerHOTS / competency
An office has no petty cash book and the head cashier records small expenses of ₹450 postage, ₹600 conveyance and ₹120 stationery in the main cash book. The manager proposes imprest of ₹3,000 per fortnight. For a fortnight with those expenses plus ₹830 more of other items, explain the number of main cash book entries saved and the reimbursement. (4 marks)
Hint
One entry replaces many.
Answer
Total spent = 450 + 600 + 120 + 830 = ₹2,000. With the imprest system only one entry (reimbursement ₹2,000) is made in the main cash book instead of one per payment (at least four here). The petty cashier holds ₹1,000 at the end; the next fortnight begins with ₹3,000.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.What is the imprest?Show answer
The fixed sum given to the petty cashier at the start of a period.
2.What is reimbursed?Show answer
The total amount spent.
3.Why analysis columns?Show answer
To classify each expense under its head.
4.Who keeps the petty cash book?Show answer
The petty cashier.
5.Is the petty cash book a subsidiary book?Show answer
Yes.

Petty Cash Book: Imprest System, Analytical Columns and Reimbursement: frequently asked questions

Is petty cash a separate book or part of the cash book?

It is a separate subsidiary book kept by the petty cashier.

How is imprest restored?

The head cashier gives the exact amount spent.

What does the balance in the petty cash book show?

Unspent cash in the petty cashier's hand.