Question

Prepare the journal entries to both (a) reimburse and (b) increase the fund amount?

Answer 1

To reimburse the fund amount, debit the Fund Reimbursement and credit the Cash account. To increase the fund amount, debit the Cash account and credit the Fund Increase account.

Step-by-step explanation:

When reimbursing the fund amount, you need to debit the Fund Reimbursement account and credit the Cash account. This entry reflects the transfer of money from the cash account to reimburse the fund.

1. Debit Fund Reimbursement account
2. Credit Cash account

When increasing the fund amount, you need to debit the Cash account and credit the Fund Increase account. This entry reflects the transfer of money from the cash account to increase the fund.

1. Debit Cash account
2. Credit Fund Increase account