Which of the following would be included in the entry to record the replenishment of a petty cash fund?
A) A credit to Petty cash
B) A debit to Cash in bank
C) A credit to Cash in bank
D) A credit to various expenses and assets

Question

Quizplus · Accepted Answer

To replenish a petty cash fund, cash is normally taken from the cash in bank account and placed in the petty cash account. Therefore, a credit must be made to cash in bank to reflect that cash has been removed from the account. At the same time, a debit is made to petty cash so that the petty cash account balance is increased.

Which of the Following Would Be Included in the Entry