A petty cash fund of $100 is replenished when the fund contains $3 in cash and receipts for $93. The entry to replenish the fund would
A) credit Cash Over and Short for $4.
B) credit Miscellaneous Revenue for $4.
C) debit Cash Over and Short for $4.
D) debit Miscellaneous Expense for $4.

Question

Quizplus · Accepted Answer

To replenish the petty cash fund, we need to debit the appropriate expense accounts for the expenses incurred and credit the Cash account for the amount spent. However, in this case, since the petty cash fund is short by $4 ($100 - $96), we also need to debit the Cash Over and Short account for this amount. Therefore, the correct entry would be to debit Miscellaneous Expense for $93 and Cash Over and Short for $4, and credit Cash for $97.

A Petty Cash Fund of $100 Is Replenished When the Fund