Petty cash refers to a small amount of cash kept on hand by a business or organization to cover minor expenses, such as office supplies, postage, or travel reimbursements, that arise in the course of daily operations. Petty cash funds are typically maintained in a secure location, such as a locked drawer or petty cash box, and are managed by a designated custodian or petty cash manager responsible for disbursing and replenishing the funds as needed. Petty cash transactions are recorded in a petty cash book or log, documenting the date, purpose, amount, and recipient of each disbursement, along with supporting receipts or vouchers for accountability and reconciliation purposes. Replenishment of petty cash funds is done periodically by reimbursing the custodian for the total amount of disbursements made since the last replenishment, based on the supporting documentation provided. Petty cash helps streamline the process of handling small, routine expenses and reduces the need for frequent check writing or electronic payments, improving efficiency and control over cash management for businesses and organizations.