I need to decrease a petty cash fund from $200 to $75, I have a current balance of $45 petty cash payment in receipts and $165 in currency. What entry will I use to eliminate the fund?
1. debit to cash short and over for $10
2. Debit ti cash for $90
3. Debit to miscellaneous expenses for $35
4. Credit to petty cash for $165
or
5. Credit to cash for $90

smrtpants

Just to recap:

You open your entry by saying that you "decrease a petty cash fund from $200 to $75", ...

...but at the end of your entry you indicate that you want to "eliminate the fund".


Each of these end results would require different entries.



So which is it, do you want to decrease the PC balance or reconcile it to $0.00 ?

(Pending your answer to my question for clarification, I can answer your original question.)

pittfan1960

Sorry about the typo, "Decrease" the fund to the $75 is my objective,

isha_miranda

Eleminate the fund or decrese the fund?

Anyhow settle all the petty cash that you have and restart with a new float.