If a petty cash fund is established in the amount of $200, and contains $119 in cash and $84 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accountsa. Petty Cash, $84. b. Petty Cash, $81. c. Cash, $81; Cash Over and Short, $3. d. Cash, $84.

Question

Cassius

Business

9 March, 09:14

If a petty cash fund is established in the amount of $200, and contains $119 in cash and $84 in receipts for disbursements when it is replenished, the journal entry to record replenishment should include credits to the following accountsa. Petty Cash, $84. b. Petty Cash, $81. c. Cash, $81; Cash Over and Short, $3. d. Cash, $84.

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Answers (1)

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Tommy Gibbs · Answer 1

The correct option is C

Explanation:

The journal entry which is to be passed in order to replenished the account is as:

Petty Cash A/c ... Dr $84

Cash A/c ... Cr $81

Cash Over and Short A/c ... Cr $3

In order to replenish the account of petty cash, the account of expense (name of expense is not given, so petty cash account) is debited. Therefore, the petty cash is debited. The cash account is credited and the excess or over (which is $3 that is $200 - [$119 + $84 = $203]) is replenished by crediting the account.