Question

​Sam's Tutoring​ Service's $550 petty cash fund has a shortage of $6. The facts​ are: $200 in valid receipts for​ expenses; $ 544$544 in coins and currency. The journal entry to replenish the petty cash fund would include​ a

Answer 1

Answer:

a debit to expenses by $ 200 and  debit to Cash and short over by $ 6

Explanation:

The entry to replenish the petty cash fund would be

Miscellaneous Expenses         $ 200 Dr

Cash and Short over                $ 6  Dr

Cash                                                             $ 206 Cr

The shortage is recorded as an expense in the reimbursing entry with a debit to Cash Over and Short account .

The steps to follow while posting the entry are

1. prepare payment reports
2. compute cash needed by subtracting cash remaining from total fund amount
3. Check Dr= Cr in the entry- any difference is Cash Over and Short