You are placed in charge of a $200 petty cash fund. On December 31, 2020, at the end of your companys fiscal year, $30 in currency and coin remain in the fund. (4 Marks)

The expenditures from the petty cash fund up to this point were $105 for office supplies and $65 for delivery expense (ignore HST). You did not replenish this fund at the end of the year, and instead have the fund replenished until January 6, 2021.

Explain why this delaying the replenishing of the petty cash fund is not following good accounting practices. (Hint: Use 1 or more GAAP Principles to help support your answers as to why the petty cash fund should have been replenished on December 31, 2020.)