A $135 petty cash fund has cash of $18 and receipts of $120. The journal entry to replenish the account would include a: a. credit to Petty Cash for $120
b. credit to Cash for $102
c. debit to Cash for $120
d. credit to Cash Short and Over for $3

Credit to cash short and over of $3

Explanation:

Petty cash account is used to settle little expenses of a business that will not require writing a cheque.

The petty cash account has a balance that must be maintained when it is replenished.

When the account is above its limit it is debited and cash over and short is credited.

When it is below it's limit it is credited back to its normal balance and cash over and short is debited.

In the scenario the petty cash account has a limit of $135

There was a balance of $18 and a cash inflows of $120 making a total of $138.

This is over its limit

The excess is 138 - 135 = $3

This excess is debited from petty cash account and credited to cash short and over account

answer; i believe the correct answer is (75 years);

answer; /// the above statement is (true);