The entry necessary to establish a petty cash fund should include:
A) A debit to Cash and a credit to Petty Cash.
B) A debit to Cash and a credit to Cash Over and Short.
C) A debit to Petty Cash and a credit to Cash.
D) A debit to Petty Cash and a credit to Accounts Receivable.
E) A debit to Cash and a credit to Petty Cash Over and Short.

Question

Quizplus · Accepted Answer

The entry necessary to establish a petty cash fund should include a debit to Petty Cash and a credit to Cash, as the cash is being transferred from the main cash account to the petty cash account.

The Entry Necessary to Establish a Petty Cash Fund Should