When is petty cash fund replenished

A functioning petty cash system includes internal controls to ensure that all transactions are recorded and that purchase amounts reconcile with the sum remaining in the fund. Petty Cash Log. Bookkeeping Interface. Locking the Box. How much petty cash should you keep on hand? Do: specify what it can be spent on. Do: require employees to account for expenses. Seven simple steps to improve controls over petty cash Decide on a float and when to replenish.

Segregation of roles. Define the expense limit and approval matrix. Petty cash replenishment refers to the process of restoring the cash balance in the petty cash fund back to its original imprest amount.

Suppose for example a business maintains a petty cash fund of At the end of an accounting period a count of the petty cash shows that the fund contains cash of and expense vouchers for supplies of 40 and postage of The accounting records will show the following bookkeeping entries when the business withdraws cash to replenish the petty cash fund. It should be noted that there is no entry made to the petty cash fund.

The cash added to the fund simply replaces the expense vouchers. Original receipts must be provided by departments when seeking reimbursements for their Petty Cash Fund. An account book of final entry.

In an accounting system, the general ledger is the place where financial information resides. When a requisition and purchase order has not been created.