The Petty Cash Conundrum Solved!

Hey everyone.
I’m sick of the petty cash questions that pop up and tend to confuse one endlessly. What about you? Especially those pesky IOUs. So I, once and for all, tackled the petty cash stuff and this time, in-depth, understood what you need to know for acing the numericals. 3. Just 3 formulae. Learn ’em and hopefully the rest will be history. Thought I’d just clear-cut write ’em so they can help anyone who wouldn’t have to go thru too-much trouble. (I’m aware these are likely already in ur books, but I was shocked to find, in my book, a formula which was improperly given!)

1: Imprest Amount = Cash + Payments + IOUs – Receipts
Use this to find out cash present.
To understand this formula, shuffle it:
Cash = Imprest Amount – Payments – IOUs + Receipts
(We subtract the money ‘taken away’ from Imprest ie Payments and IOUs and add money ‘added’ to imprest ie Receipts to get the remaining cash. Easy, right?)

2. Money to top up with: Payments – Receipts.
Every. Time. DON’T include IOUs here, as technically they aren’t a petty expenditure so won’t be reimbursed.

Alternatively: 3. Money to top up with: Imprest – Cash – IOUs
Figure out Cash, (if not given of course) using formula 1. We include IOUs here as
a) Again, not expenditure
b) We expect to receive this money.

That’s it. Hope this helps even a single soul out here.

Over and out,
Best of luck every1!