If a petty cash fund is established in the amount of $250, and contains $153 in cash and $94 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accounts
A) Petty Cash, $94.
B) Petty Cash, $97.
C) Cash, $94; Cash Over and Short, $3.
D) Cash, $97.

Question

Quizplus · Accepted Answer

The total amount to replenish the petty cash fund is $97 ($250 - $153). Therefore, the credit should be to Cash for $97, as this is the amount needed to bring the petty cash fund back to its established amount.

If a Petty Cash Fund Is Established in the Amount