Question

meng company maintains a $395 petty cash fund. on january 31, the fund is replenished. the accumulated receipts on that date represent $99 for office supplies, $198 for merchandise inventory, and $39 for miscellaneous expenses. there is a cash shortage of $8. based on this information, the amount of cash in the fund before the replenishment is:

Answer 1

The amount of cash in the petty cash fund before replenishment is $51, which is calculated by subtracting the total receipts/expenses and cash shortage from the initial fund amount.

Step-by-step explanation:

The transaction described involves the maintenance and replenishment of a petty cash fund by Meng Company. The initial fund is $395, and upon replenishment, we need to calculate the amount of cash left in the fund before adding more money. The receipts total to $99 for office supplies, $198 for merchandise inventory, and $39 for miscellaneous expenses, which sums up to $336. There’s also a reported cash shortage of $8. To find the remaining cash in the petty cash fund, we subtract the total expenses and the shortage from the initial fund.

Calculation:

• Office supplies: $99
• Merchandise inventory: $198
• Miscellaneous expenses: $39
• Total receipts/expenses: $99 + $198 + $39 = $336
• Cash shortage: $8
• Initial petty cash fund: $395
• Remaining cash = Initial fund - Total receipts/expenses - Cash shortage
• Remaining cash = $395 - $336 - $8
• Remaining cash = $51

Therefore, the amount of cash in the fund before replenishment is $51.