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Assume that the custodian of a $450 petty cash fund has $57.10 in coins and currency plus $387.00 in receipts at the end of the month. The entry to replenish the petty cash fund will include:a. A debit to Cash for $388.50. b. A credit to Cash Over and Short for $4.00. c. A debit to Petty Cash for $392.50. d. A credit to Cash for $396.50. e. A debit to Cash for $396.50.

Respuesta :

shamello1988

Answer:

e a debit to cash for 396.50

According to the provided transaction, there is a debit to cash over and short with the amount of $5.90 as the amount of petty cash fund of $450 is more than the receipts of petty cash, that is, $444.10 ($387 + $57.10).

None of the options are correct.

What is a petty cash fund?

A petty cash fund is a fund created by an entity for the reimbursement of expenses in cash of minimal value.

The journal entry for recording replenishment of petty cash fund is as follows:

Particulars                                                  Debit ($)           Credit ($)

Petty cash receipts                                         387

Cash over and short ($450-$387-$57.10)      5.90

   Cash                                                                                     450

Therefore, the journal entry must be debited to the cash over and short account by $5.90.

Learn more about the replenishment of petty cash in the related link:

https://brainly.com/question/19595773

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