At the time a $400 petty cash fund is being replenished,the company's accountant finds vouchers totaling $350 and petty cash of $50.The vouchers include: postage,$100; business lunches,$150; delivery fees,$75; and office supplies,$25.Which of the following is not recorded when recognizing expenditures from the petty cash fund?

Question

Quizplus · Accepted Answer

When recognizing expenditures from the petty cash fund, we need to debit the expenses and credit the petty cash account. Therefore, options A and B are both correctly recorded. Option C is also correct because we credit the petty cash account for the amount of vouchers used. However, option D is incorrect because we already have petty cash of $50 available and we only need to replenish the fund with the remaining $350 worth of vouchers. Therefore, we need to debit petty cash for only $350, not $400.

At the Time a $400 Petty Cash Fund Is Being