Alpha Company replenished a $500 petty cash fund. The petty cash box contained vouchers of $87 for postage, $173 for supplies, $58 for gasoline, and cash on hand of $182. The journal entry to reflect replenishment would include:
a. debits to expense of $318
b. a debit to Cash for $318
c. a credit to Petty Cash for $318
d. a credit to Cash or $182

Here the correct option is "b"

Step-by-step explanation:

First we need to understand the term "petty cash". As the name itself indicates that the petty cash box is maintained for petty cash expenditures. So it does not need heavy funds rather it accomodates payments for a relatively smaller expenditure which are paid in day to day expenses.

So, from the given options, Option "b" is the right option which exactly states that the journal entry to reflect replenishment would include "a debit to cash for $318" as the petty cash is maintained as a separate entity than the cash book so its transcitions are set down individually.

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answer: sherk

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