A company set up a petty cash fund with $800. The disbursements are as follows:

Office supplies $300

Shipping $50

Postage $30

Delivery expense $350

To create the fund, which account should be credited?

A. Postage

B. Cash at bank

C. Supplies

D. Petty Cash

Question

Business

Xavier Sullivan

30 April, 12:30

A company set up a petty cash fund with $800. The disbursements are as follows:

Office supplies $300

Shipping $50

Postage $30

Delivery expense $350

To create the fund, which account should be credited?

A. Postage

B. Cash at bank

C. Supplies

D. Petty Cash

+1

Answers (1)

Know the Answer?

Sanaa Harper · Answer 1

The correct option is B, cash at bank.

Explanation:

In creating the fund, cash of $800 needs to made available to the petty cash account.

In order to achieve this, the cash is moved from the cash at bank to petty cash which effectively means that the cash at bank the giving account should be credited while the receiving account, the petty cash account is debited.

Option B is correct since it is the account meant to be credited in order that the petty cash fund account can be created

A company set up a petty cash fund with $800. The disbursements are as follows:Office supplies $300Shipping $50Postage $30Delivery expense $350To create the fund, which account should be credited?A. PostageB. Cash at bankC. SuppliesD. Petty Cash

A company set up a petty cash fund with $800. The disbursements are as follows:

Office supplies $300

Shipping $50

Postage $30

Delivery expense $350

To create the fund, which account should be credited?

A. Postage

B. Cash at bank

C. Supplies

D. Petty Cash