A $200 petty cash fund has cash of $20 and receipts of $177.The journal entry to replenish the account would include a credit to

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The journal entry to replenish the account includes a debit to the expense accounts that were paid out of the petty cash fund (such as office supplies, postage, etc.) for the total amount of receipts ($177), a debit to Cash Over and Short for any discrepancy ($3 in this case), and a credit to Cash for the total amount spent from the petty cash fund ($180). There is no need for a credit to Petty Cash because the fund is being replenished, not reduced.

A $200 Petty Cash Fund Has Cash of $20 and Receipts