Question

A $100 petty cash fund has cash of $20 and receipts of $82. The journal entry to replenish the account would include a

a. credit to Cash Short and Over for $2.
b. debit to Cash for $80.
c. credit to Petty Cash for $82.
d. credit to Cash for $82

Answer 1

The journal entry to replenish the petty cash fund would include a credit to Cash for $82 and a debit to various expense accounts.

Step-by-step explanation:

The journal entry to replenish the petty cash fund would include a credit to Cash for $82 and a debit to various expense accounts to account for the disbursement of the cash. Since the cash in the petty cash fund is only $20 and the total receipts are $82, the difference of $62 is the amount of expenses paid with cash from the fund.