The petty cash fund has a current balance of $200.Based on activity in the fund,it is determined that the balance needs to be changed to $400.Which journal entry is needed to make this change?
A)Debit the Petty Cash account and credit the Cash account for $400.
B)No journal entry is needed because this change only involves cash.
C)Debit the Petty Cash account and credit the Cash account for $200.
D)Debit the Cash account and credit the Petty Cash account for $200.

Question

Quizplus · Accepted Answer

To increase the petty cash fund from $200 to $400, you need to debit the Petty Cash account and credit the Cash account for the additional $200 needed.

The Petty Cash Fund Has a Current Balance of $200