Question

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

Answer the question below based on the above information.

To create the fund, which account should be credited?
Question 1 options:

Postage


Supplies


Petty Cash


Cash at Bank

Answer 1

Petty Cash

Step-by-step explanation:

The fundamental principle of accounting is credit the giver and debit the receiver. In this instance petty cash is giving out money to Office Supplies, Shipping, Postage and Delivery expense