The replenishment of the petty cash fund under an imprest system requires a debit to the Petty Cash account for the amount of the replenishment.

Question

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Under an imprest system, the replenishment of the petty cash fund involves debiting various expense accounts for the amounts spent and crediting Cash (not debiting Petty Cash), to bring the petty cash fund back to its original fixed amount.

The Replenishment of the Petty Cash Fund Under an Imprest