01 May 2012
as per my opinion,amt given on imprest a/c is nth but advance to an employee to carry out certain expenses be it cash or cheque. Further if the employee expends this amount for any expenditure,exceeding 20k, he should consider not using cash for this amount. Hence as far as cash given to an employee on imprest would be treated as an advance and would no where be reflected in P&l a/c,henceforth no question of allowability.
the question of allowability arises only on the expenditure done by the employee.
CAclubindia
