Replenishing the petty cash fund requires:

• A. Increasing the petty cash fund balance by depositing additional cash.
• B. Recording expenses and issuing a check for the amount spent to restore the fund to its original balance.
• C. Transferring unused petty cash to the company's main bank account.
• D. Recording only the cash overages and shortages without issuing any check.

Answer: (B)

Verified step by step guidance

1. Understand the purpose of replenishing the petty cash fund: It is to restore the fund to its original balance by accounting for expenses incurred and ensuring the fund is ready for future use.
2. Identify the expenses paid using petty cash: Gather receipts or documentation for all expenses made from the petty cash fund during the period.
3. Record the expenses in the accounting system: Create journal entries to debit the appropriate expense accounts (e.g., office supplies, travel expenses) and credit the petty cash account for the amount spent.
4. Issue a check to replenish the petty cash fund: Write a check from the company's main bank account for the total amount spent, ensuring the petty cash fund is restored to its original balance.
5. Verify the petty cash fund balance: Confirm that the replenishment process has restored the petty cash fund to its original balance, accounting for any overages or shortages if applicable.