Question

How do you change the amount in a petty cash fund?

Answer 1

To change the amount in a petty cash fund, you need to replenish it by adding more money. This involves recording the replenishment and deducting the amount from the main cash account.

Step-by-step explanation:

To change the amount in a petty cash fund, you need to replenish it. This process involves adding more money to the fund to bring it back to its original amount. Here's how you replenish a petty cash fund:

1. Add up the amounts spent from the petty cash fund.
2. Get the total amount spent from the petty cash fund.
3. Prepare a petty cash voucher to record the replenishment.
4. Get cash from the main cash account to replenish the petty cash fund.
5. Record the replenishment in the petty cash book.
6. Deduct the replenishment amount from the main cash account.