A Company Plans to Decrease a $200 Petty Cash Fund

A company plans to decrease a $200 petty cash fund to $75. The current balance in the account includes $45 petty cash payment in receipts and $165 in currency. The entry to reduce the fund will include a:

A) Debit to Cash Short and Over for $10.
B) Debit to Cash for $90.
C) Debit to Miscellaneous Expenses for $35.
D) Credit to Petty Cash for $165.
E) Credit to Cash for $90.

Correct Answer:

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