Correct entry to replenish petty cash?

Answer 1

Typically, a company would write a check in the amount needed to bring the petty cash box back to the imprest amount. So, if the petty cash account has a balance of $200, but there is only $50 in cash in the petty cash box, they would write a check for $150...usually to the Office Manager or whoever is responsible for petty cash.

The debit side of the entry is to the various expense accounts supported by the receipts or vouchers in the box: postage expense, office expense, misc. expense, etc.

Of course, the credit side of the entry is to cash. The only time you ever make an entry to an imprest petty cash account is when you first set it up, or if you increase or decrease the imprest amount.

In the example above, if the receipts in the box did not total $150, you would still write the check for $150 and have an entry to an expense account called cash over/short.