A $50 petty cash fund has cash of $20 and valid receipts for $30. The entry to replenish the fund would include a

Question

Quizplus · Accepted Answer

To replenish the petty cash fund, the company needs to record the expenses paid out of the fund. This is done by debiting various expense accounts based on the receipts and crediting Cash for $30 to bring the fund back to its original amount. There is no direct entry to the Petty Cash account in this process.

A $50 Petty Cash Fund Has Cash of $20 and Valid