Question

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

Answer 1

200-75=125

Step-by-step explanation:

That's simple math ..

Answer 2

entry as

Debit Cash is $175

Credit Petty Cash Fund is $175

Step-by-step 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