Haliburton Hotel's $200 Petty Cash fund has a shortage of $8. The facts are $160 in valid receipts for expenses; $32 in coins and currency. The journal entry to replenish the petty cash fund would include a

Question

Quizplus · Accepted Answer

The correct journal entry to replenish the petty cash fund includes debiting various expenses for $160 (total of valid receipts), debiting Cash Short and Over for $8 (to account for the shortage), and crediting Cash for $168 (the total needed to replenish the fund back to its original $200, accounting for the $32 still in the fund). Option C is correct because it addresses the shortage by debiting Cash Short and Over.

Haliburton Hotel's $200 Petty Cash Fund Has a Shortage of $8