The entry to replenish a $100 petty cash fund which has cash of $20 and valid receipts for $76 would include

Question

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DTo replenish the petty cash fund, the company needs to bring the fund back up to its original amount of $100. Since there is $20 in cash and $76 in valid receipts, this means $96 has been used, leaving a shortfall of $80 to bring the fund back to $100. The correct entries are a credit to Cash for $80, because the company is reducing its cash balance by this amount to replenish the fund, and a debit to Petty Cash for $80, to reflect the increase in the petty cash fund balance.

The Entry to Replenish a $100 Petty Cash Fund Which