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

The correct entry for replenishing a petty cash fund is to debit each expense account for the amount of the voucher and credit the petty cash account for the total amount replenished. Therefore, options A, B, and C are all correct entries. Option D, debit petty cash for $350, is not a correct entry because petty cash was already credited for that amount when the fund was replenished.

At the Time a $400 Petty Cash Fund Is Being