The journal entry to establish a petty cash fund includes a debit to

Name: The journal entry to establish a petty cash fund includes a debit to
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Question

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When establishing a petty cash fund, we need to increase the balance of Petty Cash account and decrease the balance of Cash account. Therefore, we make a debit to Petty Cash and a credit to Cash. Option A correctly represents this transaction. Options B, C, and D have incorrect account debits and credits.

The Journal Entry to Establish a Petty Cash Fund Includes