Question

A company set up a petty cash fund with $800. The disbursements are as follows:

Office supplies $300


Shipping $50


Postage $30


Delivery expense $350



To create the fund, which account should be credited?


A. Postage


B. Cash at bank


C. Supplies


D. Petty Cash

Answer 1

To create the fund, which account should be credited? Petty cash

To create the fund, which account should be Debited? Cash at bank

To disburse funds, which account credited? Petty cash

Step-by-step explanation:

Answer 2

The correct option is B,cash at bank.

Step-by-step explanation:

In creating the fund,cash of $800 needs to made available to the petty cash account.

In order to achieve this,the cash is moved from the cash at bank to petty cash which effectively means that the cash at bank the giving account should be credited while the receiving account,the petty cash account is debited.

Option B is correct since it is the account meant to be credited in order that the petty cash fund account can be created