Question

A $150 petty cash fund has cash of $54 and receipts of $83. The journal entry to replenish the account would include a
a.
debit to Cash Over and Short for $13
b.
credit to Petty Cash for $29
c.
debit to Cash for $83
d.
credit to Cash for $54

Answer 1

Answer:

Option A.

Explanation:

It is given that a $150 petty cash fund has cash of $54 and receipts of $83.

We need to find the journal entry to replenish the account.

Cash and receipts = Cash + receipts

                               = $54 + $83

                               = $137

Short for cash = Cash fund - Cash and receipts

                       = $150 - $137

                       = $13

The required journal entry to replenish the account would include a debit to Cash Over and Short for $13.

Therefore, the correct option is A.