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

To find the amount of cash in the petty cash fund before replenishment, subtract the total receipts for office supplies, merchandise inventory, miscellaneous expenses, and the cash shortage from the maintained fund balance of $300. The resulting amount before replenishment was $32.

Step-by-step explanation:

The student's question relates to the operation and replenishment of a petty cash fund. To determine the amount of cash in the fund before the replenishment, we need to consider the total expenses supported by receipts and any shortage of cash that might be present. The total expenses, as stated, include:

$80 for office supplies

$160 for merchandise inventory

$20 for miscellaneous expenses

In addition to these expenses, there was a cash shortage of $8. Since the petty cash fund maintains a balance of $300, we subtract these amounts to determine the remaining cash before replenishment:

$300 - ($80 + $160 + $20 + $8) = $300 - $268 = $32

Therefore, the amount of cash in the fund before the replenishment was $32.

Answer 2

$48

Step-by-step 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