When the petty cash fund is replenished, the petty cash account is adjusted for the total of all expenditures made since the fund was last replenished.

Question

Quizplus · Accepted Answer

When the petty cash fund is replenished, the petty cash account balance itself is not adjusted; instead, the various expense accounts are debited for the expenditures made, and the cash account (or equivalent) is credited to reflect the replenishment. The petty cash fund balance remains constant unless a decision is made to change the fund size.

When the Petty Cash Fund Is Replenished, the Petty Cash