The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014: On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to replenish the petty cash fund would include a

Question

The petty cash fund of CHF200 for the Hansen Company appeared as follows on July 31, 2014:  On July 31, the office manager gives instruction to increase the petty cash fund to CHF300. The journal entry to replenish the petty cash fund would include a

Quizplus · Accepted Answer

To replenish the petty cash fund, the office manager needs to provide additional funds to the fund. Therefore, a credit to Cash for CHF192.50 will increase the petty cash fund to CHF300, while the debit will be made to the Petty Cash account. There is no need to use Accounts Receivable or Cash Over and Short accounts in this transaction.

The Petty Cash Fund of CHF200 for the Hansen Company