When a check is written to replenish the petty cash fund,it is entered in the journal by debiting the proper accounts indicated in the Distributions columns of the petty cash record and by crediting Cash Over and Short.

Question

Quizplus · Accepted Answer

When replenishing the petty cash fund, the journal entry involves debiting the various expense accounts indicated in the petty cash record for the amounts spent and crediting Cash (not Cash Over and Short) for the total amount replenished. Cash Over and Short is used only if there's a discrepancy between the actual cash on hand and the recorded amount.

When a Check Is Written to Replenish the Petty Cash