Question

A $100 petty cash fund contains $91 in petty cash receipts and $11 in currency and coins. The journal entry to record the replenishment of the fund would include a

a. debit to Cash Short and Over for $2.
b. credit to Cash for $91.
c. credit to Petty Cash for $91.
d. credit to Cash Short and Over for $2.

Answer 1

The journal entry to record the replenishment of the petty cash fund would include a credit to Petty Cash for $91 and a debit to Cash for $91.

Step-by-step explanation:

The journal entry to record the replenishment of the petty cash fund would include a credit to Petty Cash for $91. This is because the petty cash receipts are being replenished, which increases the amount of cash in the petty cash fund. The entry would also include a debit to Cash for $91, to reflect the decrease in the amount of cash in the general cash account.

Therefore, the correct answer is: c. credit to Petty Cash for $91.