Question

question 3 (10 points) saved
listen
a company set-up a petty cash fund with \\$800. the disbursements are as follows:
office supplies \\$300
shipping 50
postage 30
delivery expense \\$350
answer the question below based on the above information.
to disburse funds, which account credited?
cash at bank
supplies
postage
petty cash

Explanation:

Analyze the petty cash transaction

Using the Petty Cash Fund and Journalizing Petty Cash knowledge points

$$ \text{Initial Fund} = \$800 $$

When disbursements are made directly from the petty cash box, no formal journal entry is recorded immediately. Instead, signed receipts are kept in the box.

Determine the replenishment entry

Using the Journalizing Petty Cash knowledge point

$$
LATEXBLOCK0
$$

To disburse funds (replenish the fund and record expenses), the Cash at Bank (or Cash) account is credited, while the individual expense accounts are debited. The Petty Cash account itself is only debited when establishing or increasing the fund, and credited only when decreasing or eliminating the fund.

Answer:

• (A) Cash at Bank (Correct answer)
• (B) Supplies
• (C) Postage
• (D) Petty Cash