Question

In the content area A, a $184 petty cash fund has petty cash on hand of $24 and receipts of $174. The journal entry to replenish the fund would include a: a) Debit to Petty Cash for $174

b) Debit to Cash Over and Short for $10
c) Debit to Cash for $184
d) Debit to Miscellaneous Expense for $10

Answer 1

The journal entry to replenish a petty cash fund includes a debit to the Petty Cash account for $174.

Step-by-step explanation:

The journal entry to replenish the petty cash fund would include a debit to the Petty Cash account for $174.

Petty cash is a fund set aside for small and incidental expenses. When the petty cash fund runs low, it is replenished by recording a journal entry to increase the petty cash account. In this case, the petty cash fund had $24 on hand and $174 in receipts, totaling $198. To replenish the fund, a debit entry is made to the Petty Cash account for $174 to increase its balance back to the original amount of $184.

No other accounts mentioned in the answer choices are affected in this journal entry, so option a) Debit to Petty Cash for $174 is the correct choice.