Question

David wants to replenish the Rs150 petty cash fund. He has receipts for the following total payments: supplies, Rs36; and postage (Office Expense), Rs27. A cash count shows Rs87 in the petty cash box. What is the correct journal entry to record the transaction?

• A. Debit Cash Rs63 and credit Miscellaneous Expense Rs63
• B. Debit Miscellaneous Expense Rs63 and credit PettyCash Rs63
• C. Debit Office Expense Rs27, debit Supplies Rs36 and credit Petty Cash Rs63
• D. None of these

Answer 1

The correct option is B

Debit Miscellaneous Expense Rs63 and credit PettyCash Rs63

Debit Miscellaneous Expense Rs63 and credit Petty Cash Rs. 63