The entry establishing a $200 petty cash fund would include a:
A)debit to Cash for $200.
B)credit to Petty Cash for $200.
C)debit to Petty Cash for $200.
D)debit to Miscellaneous Expense for $200.

Question

Quizplus · Accepted Answer

To establish a petty cash fund, we need to debit the Petty Cash account and credit Cash for the same amount. In this case, since we are establishing a $200 petty cash fund, we need to debit Petty Cash for $200. Therefore, the correct entry would be a debit to Petty Cash for $200.

The Entry Establishing a $200 Petty Cash Fund Would Include