[Anna1522]

Hi All,

I am currently a student at college, I bought a used text book and the answer key has been torn out. I am currently studying for a text and can't seem to figure out several questions in the study guide. Can you help me?

This is one of the questions

If a firms $300 petty cash fund is down to $23 and contains vouchers for the following:

Gas $155
Office Expenses $70
Postage $50

When the petty cash fund is replenished it is recorded in the following way:
a.debit the ledger cash account for $277
b.debit cash over and short for $2
c.credit over and short for $2
d. credit the ledger cash account for $275

[pready]

You Debit Gas Expense for 155
Debit Office Expenses for 70
Debit Postage Expense for 50
Debit Cash over and short for 2
Credit Cash for 277