Question

What should the amount in petty cash equal at the end of each workday?

a) Total expenses
b) Cash on hand plus receipts
c) Voucher amounts
d) Employee salaries

Answer 1

The petty cash at the end of each workday should equal the sum of cash on hand and receipts, which ensures all expenditures are accounted for and the fund is properly replenished.

Step-by-step explanation:

The amount in petty cash at the end of each workday should equal the total of cash on hand plus the total of receipts for expenditures. This ensures that any money spent from the petty cash fund is accounted for and that the fund is replenished back to its original amount when necessary. To reconcile petty cash, you add up all the receipts which represent expenditures and add the remaining cash. The total should match the fixed amount of petty cash that was originally designated for the fund.