A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below. $$\begin{array} { | l | r | }
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70 \
\hline
\end{array}$$ The journal entry to replenish the account would be which of the following?

Question

A petty cash fund was established with a $400 balance. It currently has cash of $9 and petty cash tickets as shown below. $$\begin{array} { | l | r | } 
\hline \text { Travel expense } & \$ 120 \
\hline \text { Office supplies } & \$ 200 \
\hline \text { Equipment rental expense } & \$ 70 \
\hline
\end{array}$$ The journal entry to replenish the account would be which of the following?

Quizplus · Accepted Answer

The total expenses are $390 ($120 + $200 + $70), and the remaining cash is $9. The original fund was $400, so the difference ($400 - $390 - $9) is $1, which indicates a shortage. Therefore, you debit Cash Short & Over for $1 to account for the discrepancy.

A Petty Cash Fund Was Established with a $400 Balance