Petty Cash Replenishment
What is Petty Cash Replenishment?
Petty cash replenishment is the cash and/or coins necessary to return the petty cash level to the original level.
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How it Works
During the month, money is taken from petty cash and used for small payments like minor postal charges etc.
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As money is taken from petty cash, the petty cash custodian places a petty cash receipt or voucher in the petty cash container.
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At month-end, the custodian tallies the petty cash receipts.
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The total of cash receipts should equal the amount of money actually taken out of the petty cash container.
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After this, the custodian tops up or replenishes petty cash to the original amount.
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The replenishment money comes from the business’s bank account.
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And is set to a predetermined amount that is decided upon when petty cash is first set up.
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© R.J. Hickman 2020