Accounting · Petty Cash Imprest System

Assertion (A): The maintenance of a Petty Cash Book under the Imprest System provides a stronger internal control mechanism than a non-imprest system because it limits the amount of cash available for small expenses and requires frequent reconciliation. Reasoning (R): Under the Imprest System, the petty cashier is given a fixed float at the start of the period, and at the end of the period, the main cashier replenishes the exact amount spent after verifying the supporting vouchers, thus restoring the original float.