Lesson Note on Imprest Account: Meaning, Importance and Preparation for SS 2

Class: Senior Secondary School 2 (SS2 / SSS2)
Term: Second Term
Week: 8
Age: 16 years
Duration: 45 minutes
Subject: Office Practice
Curriculum Theme: Office Financial Management
Previous Lesson: Salary Documents: Payroll, Pay Slip and Vouchers.
Topic: IMPREST ACCOUNT- MEANING
Subject Matter: Meaning of imprest account (fixed cash float for small expenses), importance of imprest account, preparation of imprest account

Specific Objectives

By the end of the lesson, pupils should be able to:

Cognitive Domain:

• Define imprest account.
• State the importance of maintaining an imprest account.
• Explain the basic process of preparing an imprest account.

Affective Domain:

• Appreciate the need for proper record-keeping in managing small office expenses.
• Develop a sense of responsibility in handling petty cash.

Psychomotor Domain:

• Prepare a simple imprest account statement.
• Use petty cash vouchers correctly.

Social Domain:

• Work collaboratively to solve practical problems related to imprest accounts.

Reference Materials

The following resources were used in planning this lesson:

• Senior Secondary Schools Education Curriculum
• State Unified Scheme of Work
• Egbe, E. (2018). Comprehensive Office Practice for Senior Secondary Schools. Lagos: University Press Plc.

Instructional Materials

The teacher will teach this lesson with the aid of:

• Specimen petty cash vouchers
• Sample imprest records/petty cash book
• Calculator
• Whiteboard and markers

Rationale for the Lesson

Understanding imprest accounts helps pupils learn how to manage small, recurring office expenses efficiently. It enables them to apply principles of accountability and financial control, which are important skills for office administration and personal finance.

Prerequisite/Previous Knowledge

Pupils have a basic understanding of cash transactions and the need for recording financial activities in an office setting.

Lesson Content/Board Summary

Imprest Account

Meaning of Imprest Account

An imprest account is a system for managing petty cash in an office. A fixed amount of money (called a ‘float’) is given to a petty cashier for making small, day-to-day payments. When the money is almost spent, the cashier requests reimbursement for the exact amount spent, bringing the fund back to its original fixed amount.

Importance of Imprest Account

The imprest system is important for several reasons:

• It controls petty cash expenditure by setting a fixed limit.
• It simplifies accounting for small expenses.
• It reduces the risk of fraud and errors as all expenditures are documented with vouchers.
• It saves time by avoiding the need for approval for every small payment.
• It promotes accountability for the petty cashier.

Preparation of Imprest Account

The preparation of an imprest account involves recording all petty cash transactions and ensuring the fund is reimbursed to its original float. This is typically done using a petty cash book.

Steps involved in preparing an imprest account:

• Establish the Float: A fixed amount of money is issued to the petty cashier at the beginning of a period (e.g., month).
• Record Payments: As payments are made, the cashier records each transaction in a petty cash book and obtains a voucher for each payment.
• Balance the Account: At the end of the period, the cashier calculates the total amount spent and the remaining cash.
• Reimbursement: The cashier submits the petty cash book and vouchers to the main cashier or accountant, requesting reimbursement for the exact amount spent. This restores the fund to its original float.

Example: Simple Imprest Account Statement

A petty cashier is given an imprest float of ₦5,000 on 1st March. During the month, the following expenses were incurred:

• March 5: Stationery – ₦1,200
• March 10: Transport – ₦800
• March 18: Cleaning supplies – ₦1,500
• March 25: Postage – ₦500

Petty Cash Account for March

Date        Particulars          Voucher No.   Amount (₦)   Balance (₦)
---------------------------------------------------------------------
March 1     Cash from Bank                         5,000      5,000
March 5     By Stationery        001             1,200      3,800
March 10    By Transport         002               800      3,000
March 18    By Cleaning Supplies 003             1,500      1,500
March 25    By Postage           004               500      1,000
---------------------------------------------------------------------
                                 Total Spent   4,000
                                 Cash in Hand               1,000
                                 Reimbursement              4,000
---------------------------------------------------------------------
March 31    To Balance c/d                                  1,000
            To Cash from Bank (Reimbursement)               4,000
---------------------------------------------------------------------
April 1     By Balance b/d                                  5,000

Explanation:

• Step 1: The initial float of ₦5,000 is recorded.
• Step 2: Each expenditure is subtracted from the balance, and the amount spent is recorded.
• Step 3: At the end of the month, the total amount spent is ₦4,000.
• Step 4: The cash in hand is ₦1,000 (₦5,000 – ₦4,000).
• Step 5: The petty cashier requests a reimbursement of ₦4,000 to restore the float to ₦5,000 for the next month.

Teaching Methods/Instructional Techniques

Discussion, Lecture, Demonstration, Question and Answer, Visual Aids

Instructional Procedures

Step 1: Introduction

Time: 5 minutes
Teaching Skill: Set Induction
Teacher’s Activity: The teacher greets the pupils and asks them how small expenses are paid in their homes or schools.
Pupils’ Activity: Pupils share their experiences and ideas on managing small payments.
Learning Point: Pupils connect the lesson to real-life scenarios of managing small funds.

Step 2: Meaning of Imprest Account

Time: 10 minutes
Teaching Skill: Explanation/Definition
Teacher’s Activity: The teacher explains the meaning of an imprest account, defining terms like ‘float’ and ‘petty cash’, and uses examples of small office expenses.
Pupils’ Activity: Pupils listen attentively, ask questions for clarification, and note down the definition of an imprest account.
Learning Point: Pupils understand what an imprest account is and its purpose.

Step 3: Importance of Imprest Account

Time: 7 minutes
Teaching Skill: Discussion/Listing
Teacher’s Activity: The teacher leads a discussion on why it is important for businesses to use an imprest system for petty cash, highlighting control, accountability, and efficiency.
Pupils’ Activity: Pupils contribute to the discussion and list the various importance of imprest accounts.
Learning Point: Pupils identify the benefits of using an imprest account system.

Step 4: Preparation of Imprest Account

Time: 10 minutes
Teaching Skill: Demonstration/Explanation
Teacher’s Activity: The teacher demonstrates how an imprest account is prepared, explaining the role of petty cash vouchers, recording payments, balancing, and requesting reimbursement using the sample imprest records.
Pupils’ Activity: Pupils observe the demonstration, ask questions about the process, and take notes.
Learning Point: Pupils understand the practical steps involved in maintaining an imprest account.

Step 5: Worked Example

Time: 8 minutes
Teaching Skill: Guided Practice
Teacher’s Activity: The teacher guides the pupils through the worked example on the board, showing step-by-step how to record transactions and calculate the reimbursement amount.
Pupils’ Activity: Pupils follow along with the example, participate in calculations, and copy the example into their notebooks.
Learning Point: Pupils gain practical experience in preparing an imprest account statement.

Step 6: Class Exercise

Time: 5 minutes
Teaching Skill: Application
Teacher’s Activity: The teacher provides a short exercise for pupils to practice preparing a simple imprest account based on given transactions.
Pupils’ Activity: Pupils attempt to solve the exercise individually or in pairs.
Learning Point: Pupils apply their knowledge to solve a practical imprest account problem.

Step 7: Evaluation/Review

Time: 5 minutes

Teaching Skill: Questioning/Assessment

Teacher’s Activity: The teacher evaluates the learning by asking the following questions:

1. Define an imprest account.
2. State three reasons why an imprest account is important.
3. List the main steps involved in maintaining an imprest account.
4. If an imprest float is ₦8,000 and ₦6,500 has been spent, what amount should be reimbursed?

Pupils’ Activity: Pupils answer orally and in writing.

Learning Point: Pupils demonstrate understanding of the lesson.

Step 8: Conclusion

Time: 5 minutes
Teaching Skill: Summarization/Assignment
Teacher’s Activity: The teacher summarizes the key points of the lesson and assigns homework: “Explain the difference between a petty cash book and a main cash book.”
Pupils’ Activity: Pupils listen to the summary and note down the homework.
Learning Point: Pupils reinforce their understanding and extend their learning.

Lesson Keywords

• Imprest Account – A system where a fixed amount of cash (float) is provided for small expenses, and spent amounts are reimbursed to restore the original float.
• Petty Cash – Small amounts of cash kept on hand for minor expenses.
• Float – The fixed amount of money initially issued to the petty cashier in an imprest system.
• Vouchers – Documents that prove a payment has been made, used to support entries in the petty cash book.
• Reimbursement – The act of paying back the amount spent from the imprest fund to restore it to the original float.

Differentiation

For struggling learners, the teacher will provide simplified examples and extra guidance during the practical preparation of the imprest account. Advanced learners will be challenged to analyze potential errors in an imprest account statement and suggest corrective actions.

Note for teachers using this lesson plan

Teachers should ensure they have clear, legible sample petty cash vouchers and imprest records to demonstrate effectively. Encourage pupils to actively participate in the demonstration and calculations. Emphasize the importance of accuracy and documentation in office practice.