Question

Consider the​ following: LOADING...​(Click the icon to view the​ information.) If cash on hand is $ 14​, prepare the entry to replenish the petty cash on July 31. ​(Record debits​ first, then credits. Exclude explanations from journal​ entries.) Journal Entry Date Accounts PR Dr. Cr. July 31

Answer 1

Petty cash or petty cash fund are the small amount of money used to pay small business expenses. A part of cash balance is transferred to the petty cash account and small business expenses are deducted from the petty cash account instead of the normal cash account. The petty cash account is allowed a specific balance every month. After the end of the month it is replenished with the expense amounted in the month. Although if additional funds are required the cash may be replenished in middle of the month.

The journal entry to create a petty cash balance is

Petty cash account (DR) $14

To Cash account $14

( With the amount that is to be replenished. Assuming $14 is to be added to petty cash account )

Any expense is debited as follows

Expense account (Dr)

To Petty Cash account

If you are satisfied with the explanation please give a thumbs up.

GOOD LUCK!!!