Question

Michelle wants to replenish the Rs300 petty cash fund. She has receipts for the following total payments: postage (Office Expense), Rs40; supplies, Rs25; and repairs, Rs45. A cash count shows Rs175 in the petty cash box.What is the correct journal entry to record the transaction?

• A. Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and credit Cash Rs110
• B. Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and credit Petty Cash Rs110
• C. Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and credit Cash Rs110, credit CashShort and Over Rs15
• D. Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and debit Cash Short and OverRs15, and credit Cash Rs125

Answer 1

The correct option is D

Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and debit Cash Short and OverRs15, and credit Cash Rs125

Debit Repair Expense Rs45, debit Supplies Rs25, debit Office Expense Rs40 and debit Cash Short and OverRs15, and credit Cash Rs125.