Z-Mart plans to eliminate a $200 petty cash fund. The current balance in the account includes $45 in receipts and $165 in currency. The entry to eliminate the fund willinclude a:

Question

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To eliminate a petty cash fund, the cash on hand is counted and then reimbursed to the cashier or placed back in the general cash account. In this case, the cash balance is $165, which should be debited to Cash to return the money to the general cash account. The $45 in receipts should be used to replenish the appropriate expense accounts, but there is no need to make an entry for them in this elimination process. There is also no need to record a debit to Miscellaneous Expenses, as that account is typically used for small expenses that don't have a specific account in the chart of accounts. Similarly, there is no need to credit Petty Cash, as that account will be eliminated along with the physical fund. Finally, there is no overage or shortage to record, so there is no need to debit or credit Cash Short and Over.

Z-Mart Plans to Eliminate a $200 Petty Cash Fund