If a petty cash fund is established in the amount of $200, and contains $120 in cash and $85 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A) Petty Cash, $85.
B) Petty Cash, $80.
C) Cash, $80; Cash Over and Short, $5.
D) Cash, $80.

Question

Quizplus · Accepted Answer

The total disbursements are $85, but only $80 is needed to bring the cash back to $200. The $5 difference is recorded in Cash Over and Short.

If a Petty Cash Fund Is Established in the Amount