Assume that the custodian of a $450 petty cash fund has $62.50 in coins and currency plus $382.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

Question

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The total amount in the petty cash fund should be $450. The custodian has $62.50 in cash and $382.50 in receipts, totaling $445. Therefore, $5 is missing. To replenish the fund, a credit to Cash for $387.50 is needed to bring the fund back to $450.

Assume That the Custodian of a $450 Petty Cash Fund