Question

A $200 petty cash fund has cash of $20 and receipts of $177. The journal entry to replenish the account would include a credit to Group of answer choices Cash for $20 Cash Short and Over for $3 Petty Cash for $190 Cash for $180

Answer 1

Answer: Cash for $180

Explanation:

The Petty Cash balance should be at a certain level necessary to cover petty cash expenses of the company. In this case that amount is $200. $20 is already in cash in the account and so will need to be topped up to get to $200.

= 200 - 20

= $180

$180 will take the balance back to $200. The Cash account would be credited of this $200 and the Petty Cash would be debited.