A petty cash fund of $250 is replenished when the fund contains $15 in cash and receipts for $230. The entry to replenish the fund would

Question

Quizplus · Accepted Answer

When replenishing petty cash, the amount of cash and the total amount of receipts should equal the original amount of the fund. In this case, the cash on hand is $15 and the receipts total $230, which equals $245 ($15 + $230 = $245). Since the original petty cash fund was for $250, there is a shortage of $5 ($250 - $245 = $5). To record this shortage, the entry should debit Cash Over and Short for $5, which represents a true expense. Therefore, the correct answer is choice C.

A Petty Cash Fund of $250 Is Replenished When the Fund