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

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To replenish the petty cash fund, the company needs to record the expenses paid out of petty cash and bring the fund back to its original balance. This is done by debiting the expense account (Taxi Expenses) for the amount of the receipts ($140) and crediting Cash at Bank for the same amount, indicating that cash is being withdrawn from the bank to replenish the petty cash fund.

On 1 July 20X1 the MountainTop Hotel Established a Petty