If a petty cash fund is established in the amount of $350, and contains $300 in cash and $45 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A)Petty Cash, $45.
B)Petty Cash, $50.
C)Cash, $45; Cash Over and Short, $5.
D)Cash, $50.

Question

Quizplus · Accepted Answer

The petty cash fund needs to be replenished by the amount spent, which is $50 ($350 - $300). Therefore, the credit should be to Cash for $50.

If a Petty Cash Fund Is Established in the Amount