Question

Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represent $80 for office supplies, $160 for merchandise inventory, and $20 for miscellaneous expenses. There is a cash shortage of $8. The journal entry to replenish the fund on January 31 is:

Answer 1

Answer:

office supplies                 80 debit

inventory                         160 debit

miscellaneous expenses 20 debit

cash shortage loss              8 debit

              cash                                    268 credit

Explanation:

Once the petty cash fund is stalish we do not use that account to replenish it. we are going to usecash account, and debit the expenses and assets afford or purchase with the petty fund.

The shortage is an loss , as there is an amount of assets in he account which isn't in reality. we adjust and recognize the loss