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 would need to submit the petty cash vouchers and receipts for the purchases made from the fund. The journal entry to replenish the fund would include a credit to cash for the total amount of vouchers and receipts (CHF192.50 in this case) and a debit to the various expense accounts for the items purchased. There is no need for a debit to Petty Cash or a credit to Cash Over and Short, as these accounts will be adjusted based on any differences between the amount of cash on hand and the total of the vouchers/receipts. There is also no involvement of Accounts Receivable in a petty cash replenishment entry.

The Petty Cash Fund of CHF200 for the Hansen Company