Ask Question
Today, 07:57

Assume that the custodian of a $675 petty cash fund has $137.50 in coins and currency plus $517.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include:

+2
Answers (1)
  1. Today, 09:04
    0
    Entry to replenish

    Dr. Expenses $517.5

    Dr. Cash Short $20

    Cr. Cash (675-137.5) $537.5

    Explanation:

    Petty cash is a small amount of fund which is kept in the business for day to day expenses. Cash is issued from this fund for daily small expense which is not appropriate to withdraw from the bank by check.

    The difference between the expenses receipts and cash outflow is cash excess or short.

    In this question there is a cash shortage because the cash payment is more than the receipt received / available.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Assume that the custodian of a $675 petty cash fund has $137.50 in coins and currency plus $517.50 in receipts at the end of the month. The ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers