A petty cash fund of $100 is replenished when the fund contains $14 in cash and receipts for $94. The entry to replenish the fund would A. credit Cash Over and Short for $2. B. credit Miscellaneous Revenue for $2. C. debit Cash Over and Short for $2. D. credit Cash Over and Short for $8.

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Business

Schotzie

27 July, 03:55

A petty cash fund of $100 is replenished when the fund contains $14 in cash and receipts for $94. The entry to replenish the fund would A. credit Cash Over and Short for $2. B. credit Miscellaneous Revenue for $2. C. debit Cash Over and Short for $2. D. credit Cash Over and Short for $8.

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Answers (1)

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Tyrone Norris · Answer 1

C. Debit to Cash Over and Short for $2.

Explanation:

The term cash over and short refers to an expense account that is used to report overages and shortages to an imprest account such as petty cash. The cash over and short account is used to record the difference between the expected cash balance and the actual cash balance in the imprest account.