Hello
I am totally confused with question:
Petty cash balance each week £150. At the end of week there are some vouchers with petty cash of £16.20, £10.37, £31.65.
What transactions should be recorded in order to restore the patty cash balance:
1. Dr Bank £91.78 Cr Petty cash £91.78
2. Dr Petty cash £91.78 Cr Bank £91.78
3. Dr Petty cash £58.22 Cr Bank £58.22
4. Dr Bank £58.22 Cr Petty cash £58.22
Could you please explain me which one in correct and why?
Thank you in advance.
Kind regards
Ask the Tutor ACCA BT
FIA FA1 Petty Cash balance
9y ago#1A total of 16.20 + 10.37 + 31.65 = 58.22 and this amount has to be paid into the petty cash from the bank to bring the balance back up to £150.
Therefore:
Dr Petty Cash 58.22; Cr Bank 58.22
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