The petty cash book is usually maintained on the basis of
imprest system. Under it, a fixed amount, solely determined by the Head
Cashier, is advanced to the Petty Cashier at the beginning of the period, may
be, a week or a fortnight, or a month, by the Head Cashier. The petty cashier
submits his accounts at the end of the period to the Head Cashier and the head
cashier after examining the accounts gives him a fresh advance equivalent to
the amount spent by him during the period. Thus, in the beginning of each
period, the petty cashier has a fixed balance. The amount so advance to him is
termed as “Imprest” or “Float”.