To replenish the petty cash fund, which procedure is described?

• A. The custodian will take the vouchers to whomever writes the checks to fill the fund; the vouchers are examined for legitimacy; a check is written to the custodian for the total amount of the vouchers.
• B. The vendor issues a check to the clerk.
• C. The treasurer writes a check to the cash box.
• D. A purchase order is issued for the fund.

Answer: (A)

Replenishing petty cash is about restoring the fund to its fixed level by reimbursing the cash on hand with a check after the receipts are verified. The custodian collects the petty cash vouchers or receipts and submits them to the person who writes checks. Those vouchers are examined for legitimacy and proper authorization to ensure the expenditures are valid petty cash uses. When everything checks out, a check is issued to the custodian for the total amount of the vouchers, bringing the fund back up to its established balance. This method maintains proper internal controls: cash is replenished through a formal check to the custodian, tied to documented expenses, rather than paying vendors directly, misleading the fund with cash, or using a purchase order.