Petty cash fund is supposed to be replenished

A. Every year

B. Every half year

C. Every year

D. At the end of every accounting period

Answer: Option D

Solution(By Examveda Team)

Petty cash fund is supposed to be replenished at the end of every accounting period. Replenish means to return the amount of actual cash in the petty cash box back to the amount appearing in the general ledger account Petty Cash. This is done whenever the amount of actual cash in the petty cash box is low and at the end of each accounting period.