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An Entity's Petty Cash Expenditure in the Month Is £135

Question 3

Multiple Choice

An entity's petty cash expenditure in the month is £135. If management decide that the closing balance in the petty cash should be reduced from £200 to £150, what would the double entry be to reimburse the petty cash book at the end of the month (assume an imprest system) ?


A) Dr. Petty cash account £50
B) Cr. Bank account £50
C) Dr. Bank account £50
D) Cr. Petty cash account £50
E) Dr. Bank account £85
F) Cr. Petty cash account £85
G) Dr. Petty cash account £85
H) Cr. Bank account £85

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