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Assume that the custodian of a $450 petty cash fund has $55.90 in coins and currency plus $389.50 in receipts at the end of the month. the entry to replenish the petty cash fund will include:_____.

User CAustin
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Final answer:

To replenish the petty cash fund to its original amount of $450, the company would credit the cash account for $394.10 and debit the expense accounts for the same amount.

Step-by-step explanation:

The entry to replenish the petty cash fund would include a debit to various expense accounts totaling $389.50, which is the sum of receipts accounting for the funds spent. The petty cash fund currently has $55.90 in coins and currency, so the amount needed to replenish the fund to its original level of $450 would be $450 - $55.90 = $394.10. This amount is slightly more than the receipts, which indicate the petty cash custodian might have made a small error in cash handling or there may be a small expense not accounted for by a receipt. In any case, the accounting entry would credit the cash account (such as the main bank account) for $394.10 and debit the appropriate expense accounts which are represented by the receipts plus any discrepancy.

User Dyapa Srikanth
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