Question

Timothy wants to replenish the Rs300 petty cash fund. He has receipts for the following total payments:postage (Office Expense), Rs35; supplies, Rs25; and repairs, Rs95. A cash count shows Rs140 in the petty cash box.What is the correct journal entry to record the transaction?

• A. Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25 and credit Cash Rs155
• B. Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25 and credit Petty Cash Rs155
• C. Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25, and credit cash Rs140, credit Cash Short and Over Rs15
• D. Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25, debit Cash Short and Over Rs5,and credit cash Rs160

Answer 1

The correct option is D

Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25, debit Cash Short and Over Rs5,and credit cash Rs160

Debit Repair Expense Rs95, debit Office Expense Rs35, debit Supplies Rs25, debit Cash Short and Over Rs5,and credit cash Rs160