Assume that the custodian of a $500 petty cash fund has $62 in currency plus $412 in receipts at the end of the month. The entry to replenish the petty cash fund will include

Question

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The entry to replenish the petty cash fund involves crediting Cash for the amount spent from the fund, which is the total of the receipts ($412) plus the shortage ($26, calculated as $500 - ($62 + $412)). This totals $438, which is the amount needed to bring the petty cash fund back to its original balance of $500.

Assume That the Custodian of a $500 Petty Cash Fund