If a petty cash fund is established in the amount of $200, and contains $119 in cash and $84 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A) Petty Cash, $84.
B) Petty Cash, $81.
C) Cash, $81; Cash Over and Short, $3.
D) Cash, $84.

Question

Quizplus · Accepted Answer

The total of cash and receipts is $203, which is $3 over the established petty cash fund of $200. Therefore, the replenishment entry should credit Cash for $81 and Cash Over and Short for $3.

If a Petty Cash Fund Is Established in the Amount