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. 

How it Works

During the month, money is taken from petty cash and used for small payments like minor postal charges etc. 

As money is taken from petty cash, the petty cash custodian places a petty cash receipt or voucher in the petty cash container. 

At month-end, the custodian tallies the petty cash receipts. 

The total of cash receipts should equal the amount of money actually taken out of the petty cash container.

After this, the custodian tops up or replenishes petty cash to the original amount. 

The replenishment money comes from the business’s bank account.

And is set to a predetermined amount that is decided upon when petty cash is first set up. 

© R.J. Hickman 2020