When a petty cash fund is in use,
A) Expenses paid with petty cash are recorded when the fund is replenished.
B) Petty Cash is debited when funds are replenished.
C) Petty Cash is credited when funds are replenished.
D) Expenses paid with petty cash are recorded when the fund is replenished and petty cash is debited when funds are replenished.
E) Expenses paid with petty cash are recorded when the fund is replenished and petty cash is credited when funds are replenished.

Question

Quizplus · Accepted Answer

When a petty cash fund is in use, expenses paid with petty cash are recorded when the fund is replenished. At that time, the petty cash account is not debited or credited; instead, the expenses are recorded, and the cash account is credited to reflect the outflow of cash.

When a Petty Cash Fund Is in Use