On 1 July 20X1 the MountainTop hotel established a petty cash fund with an imprest balance of $300. At the end of the month there was $160 in petty cash and four taxi receipts and vouchers totalling $140. The accounting entry to record the replenishment of the petty cash fund is:

Question

Quizplus · Accepted Answer

The correct entry to replenish the petty cash fund involves debiting the expense account (in this case, Taxi Expenses) for the amount spent ($140) and crediting Cash at Bank for the same amount to reflect the cash withdrawal to replenish the fund. This ensures the petty cash fund is restored to its original balance of $300.

On 1 July 20X1 the MountainTop Hotel Established a Petty