A petty cash fund was established with a $200 balance. It currently has cash of $35 and petty cash tickets as follows: Office expense $130 and Entertainment Expense $45. Which of the following would be included in the journal entry to replenish the Petty Cash fund? A. credit to Cash Short & Over for $10B. debit to Cash Short & Over for $10C. debit to Cash Short & Over for $25D. credit to Cash Short & Over for $25

Question

Business

Drake Dyer

21 September, 02:35

A petty cash fund was established with a $200 balance. It currently has cash of $35 and petty cash tickets as follows: Office expense $130 and Entertainment Expense $45. Which of the following would be included in the journal entry to replenish the Petty Cash fund? A. credit to Cash Short & Over for $10B. debit to Cash Short & Over for $10C. debit to Cash Short & Over for $25D. credit to Cash Short & Over for $25

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Answers (1)

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Brenda Mccoy · Answer 1

A. credit to Cash Short & Over for $10

Explanation:

Petty Cash is used to pay the daily expenses of the business. This cash is issued and settled against the expenses tickets received. Sometime cash is calculated as short & over.

Cash to be reimburse = $200 - $35 = $165

Total value of Tickets = $130 + $45 = $175

Cash Short / over = Total of Cash tickets - Cash to be reimburse = $175 - $165 = $10

Cash balance is over from the balance in the petty cash by $10.

Journal Entry is as follow

DR. Office expense $130

DR. Entertainment Expense $45

Cr. Cash short & over $10

Cr. Cash ($200 - $35) $165