Question

In: Accounting

A company wants to decrease its $200.00 petty cash fund to $125.00. The entry to reduce...

A company wants to decrease its $200.00 petty cash fund to $125.00. The entry to reduce the fund is:

Multiple Choice

  • Debit Petty Cash for $125.00; debit Cash Over and Short $183.00; credit Cash $200.00.

  • Debit to Cash $75.00; credit Petty Cash $75.00.

  • Debit Miscellaneous Expenses $17.00; credit Cash $17.00.

  • Debit Petty Cash $58.00; credit Cash $58.00.

  • Debit Cash Over and Short for $8.00; credit Petty Cash $8.00.

Solutions

Expert Solution

Answer :

In order decrease petty cash fund to $ 125.00 from $200.00, The entry to reduce fund is Debit to Cash $75 and Credit to Petty Cash $75

Journal Entry :

Particular Debit ($) Credit ($)
Cash A/c $   75.00
      To Petty Cash A/c $     75.00

ekkarill92 answered 2 years ago
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