A way to account for petty cash by maintaining a constant balance in the petty cash account and which at any time requires that cash plus petty cash tickets must total the amount allocated to the petty cash fund, is known as the .

Imprest system

Explanation:

An imprest system is an accounting system where a fixed amount is reserved which needs to be replenished when required after a period of time. The source of the replenishment will be from another source for example from a bank account.

The imprest system only allows a replenishment of the amount that has been spent. For example of a petty cash account has $500 and $300 was spent that month, at the end of the month the $300 spent will be replaced.

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