Question

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. Based on this information, the amount of cash in the fund before the replenishment is:

Answer 1

Answer:

$48

Explanation:

Calculation for the amount of cash in the fund before the replenishment

First step is to calculate the cash balance

Cash balance=$300-($80+160+$20)

Cash balance=$300-$260

Cash balance=$40

Now let calculate amount of cash in the fund before the replenishment

Cash before replenishment=$40+$8

Cash before replenishment=$48

Therefore the amount of cash in the fund before the replenishment is: $48