Which of the following is NOT a common feature of a petty cash system?
A) Cash in the fund plus vouchers held equals the amount advanced to the petty cashier.
B) When the fund is replenished,the expenses account is debited.
C) When the fund is replenished,the cash account is credited.
D) When the fund is replenished,petty cash is credited.

Question

Quizplus · Accepted Answer

When the petty cash fund is replenished, petty cash is debited (not credited). This is because the petty cash fund is an asset account, so when it is replenished, it is increasing in value. Therefore, the accounting entry should reflect a debit to the asset account, not a credit. A, B, and C are all common features of a petty cash system.

Which of the Following Is NOT a Common Feature of a Petty