The Imprest Petty Cash System (Appendix 7A) Used to pay small amounts for miscellaneous expenses. 1. Record $300 transfer of funds to petty cash to establish the petty cash fund: 2. The petty cash custodian obtains signed receipts from each individual to whom he or she pays cash from the fund, BUT no journal entries are made by the petty cash custodian) at this time to record the disbursements as the disbursements are made from the petty cash fund. The Imprest Petty Cash System (Continued) Custodian receives a company check to replenish the fund. The fund had $171 of receipts and $127 of cash left (should have $129) 3. IF material--adjusting entry needed at end of accounting period for any unreplenished disbursements in the petty cash fund. Chapter 7-7