Question

Havermill Co. establishes a $290 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated receipts on that date represent $77 for Office Supplies, $145 for merchandise inventory, and $26 for miscellaneous expenses. The fund has a balance of $42. On October 1, the accountant determines that the fund should be increased by $58. The journal entry to record the reimbursement of the fund on September 30 includes a:

Answer 1

Havermill Co. establishes a $290 petty cash fund on September 1. The fund has a balance of $42.

Amount required for reimbursement of the fund = Beginning balance - Remaining balance

= 290 - 42

= $248

The journal entry to record the reimbursement of the fund on September 30 will be as under:

September 30	Petty cash	248
	Cash		248

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