Question

The petty cash fund of $400 was established for minor disbursements. At the end of the month, the fund included petty cash tickets for the purchase of $185 in supplies, $41 for postage, $86 for fuel and a delivery charge of $65 and cash of $23. How much cash is required to replenish the fund?

Option 1: $23
Option 2: $226
Option 3: $312
Option 4: $377"

Answer 1

In this case, $377 is required to replenish the fund.

Therefore, the correct answer is: option 4): $377.

Step-by-step explanation:

To replenish the petty cash fund, you need to restore it to its original amount of $400 by adding cash equal to the total of the expenses paid out from the fund.

The total expenses paid are the sum of the amounts for supplies, postage, fuel, and the delivery charge.

Add those together: $185 (supplies) + $41 (postage) + $86 (fuel) + $65 (delivery charge)

= $377 in total expenses.

The fund currently has $23 in cash, so you'll need to subtract this from the original fund amount to find out how much cash is required to replenish it.

Therefore, $400 (original fund amount) - $23 (current cash)

= $377 required to replenish the fund.