Question

Assume a company has $250 in its petty cash fund. It expends $175 as follows: $100 for delivery expenses, $40 for postage, $35 for office supplies. There is $75 of cash remaining in the fund after these disbursements. The journal entry to replenish the petty cash fund includes

Answer 1

Answer:

the journal entry to record petty cash expenses should be:

Dr Delivery expenses 100

Dr Postage expenses 40

Dr Office supplies expenses 35

    Cr Cash 175

Explanation:

When money is missing in a petty cash fund, e.g. imagine it was $2 short, you can use the cash short and over account which is used to balance minor differences.