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18 January, 13:35

A company wants to decrease its $200.00 petty cash fund to $75.00. the entry to reduce the fund is:

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  1. 18 January, 16:32
    0
    entry as

    Debit Cash is $175

    Credit Petty Cash Fund is $175

    Explanation:

    given data

    pretty ash fund = $200.00

    decrease cash fund to = $75

    to find out

    the entry to reduce the fund is

    solution

    we know that pretty cash fund is a small quantity of cash on hand i. e. used for the reimbursing small amounts payable

    To record the reduce the fund is as

    Debit Cash = $200 - $75

    Debit Cash = $175

    and

    Credit Petty Cash Fund = $200 - $75

    Credit Petty Cash Fund = $175

    so entry as Debit Cash is $175 and Credit Petty Cash Fund is $175
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