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Question: Assume that the custodian of a $450 petty cash fund has $53.50 in coins and currency plus $392.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: A debit to Cash for $388.50. A credit to Cash Over and Short for $4.00. A debit to Petty Cash for $392.50. A credit to Cash for $396.50. A debit to Cash for $396.50.

Transcribed text From Image: Assume that the custodian of a $450 petty cash fund has $53.50 in coins and currency plus $392.50 in receipts at the end of the month. The entry to replenish the petty cash fund will include: A debit to Cash for $388.50. A credit to Cash Over and Short for $4.00. A debit to Petty Cash for $392.50. A credit to Cash for $396.50. A debit to Cash for $396.50.

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Answer:

Answer

Cash shortage = 450-53.50-392.50 = 4

The entry would be

Debit – Expenses 392.50

Debit – cash over and short 4

Credit – Cash 396.50

Option D is the answer

Credit to cash for 396.50


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