Question

During the month a company paid $62.75 for office supplies and $71.22 for miscellaneous expenses from the petty cash fund. The entry to replenish the petty cash fund at the end of the month would include:

Answer 1

Debit Petty cash fund $133.97

Credit Bank account $133.97

Step-by-step explanation:

On purchase of office supplies, the following entries are passed;

Dr Office supplies (p/l) $62.75

Cr Petty cash fund $62.75

On incurring the miscellaneous expenses, the following entries are passed;

Dr Miscellaneous expenses (p/l) $71.22

Cr Petty cash fund $71.22

Total credits to petty cash fund

= $62.75 + $71.22

= $133.97

This amount is withdrawn from the bank for the replenishment of the petty cash account. As such, the following entries are passed;

Dr Petty cash fund $133.97

Cr Bank account $133.97