Hi Everybody,
I want to know is it possible that in Imprest Account on the date of Balance Sheet there is Credit Balance????
With the answer please give me the reasons as well. If any AS or anything relates to it...pls let me know abt that as well
Thanks
Imprest system mean eg. i was handed over 500 for petty exp. if i have spended all 500 then i will be handed over 500 again.but if i had spent 300 out of 500 then i will be handed over again only 300.only aim is to have same amt as at beginning.no way a cash bal whether it mat be petty can't have negative balance.
Hi Shudhanshu,
In respect of your querry & as answered by abhishek, Imprest balance is like a cash balance maintained with any employee of the company to enable him to make some daily payments. However in some cases, the employee may incur expense of the amount more then the balance available with him. This may be due to some urgent payments to be made by the company which the employee may make & later recover from the company. In this case such excess payment by the employee should be recorded as current liabilities & not negtive cash balance.
Thanks dear......my confusion is clear now....
CAclubindia
