A petty cash fund of $100 is replenished when the fund contains $4 in cash and receipts for $93. The entry to replenish the fund would
A) credit Cash Over and Short for $3.
B) credit Miscellaneous Revenue for $3.
C) debit Cash Over and Short for $3.
D) debit Miscellaneous Expense for $3.

Question

Quizplus · Accepted Answer

The entry to replenish the petty cash fund is a debit to various expense accounts (such as office supplies, postage, etc.) and a credit to Petty Cash. The difference between the total amount of the expenses and the amount of the original petty cash fund is debited or credited to Cash Over and Short. Since the receipts show that $93 was spent and there was only $4 left in the fund, the total expenses were $97. Therefore, the difference between the original fund of $100 and the total expenses of $97 is a debit to Cash Over and Short for $3.

A Petty Cash Fund of $100 Is Replenished When the Fund