Answer:
entry as
Debit Cash is $175
Credit Petty Cash Fund is $175
Explanation:
given data
pretty ash fund = $200.00
decrease cash fund to = $75
to find out
the entry to reduce the fund is
solution
we know that pretty cash fund is a small quantity of cash on hand i.e. used for the reimbursing small amounts payable
To record the reduce the fund is as
Debit Cash = $200 - $75
Debit Cash = $175
and
Credit Petty Cash Fund = $200 - $75
Credit Petty Cash Fund = $175
so entry as Debit Cash is $175 and Credit Petty Cash Fund is $175
