The petty cash fund of the Brooks Agency is established at $230. At the end of the current period, the fund contained $155 and had the following receipts: Entertainment: $41
Postage: $17
Printing : $17

Prepare journal entries to record:
a. Establishment of the fund
b. Reimbursement of the fund ocs at the end of the current period.

Answer and Explanation:

The journal entries are given below:

1. Petty cash A/c Dr $230  

      To Cash A/c              $230

(Being petty cash fund established)

For recording this we debited the petty cash account as it increased the assets and credited the cash as it decreased the asset

2  Entertainment expense A/c Dr $41  

  Postage expense A/c Dr $17

  Printing expense A/c Dr $17

                                       To Cash A/c Dr $75  ($230 - $155)

(Being reimbursement of the fund is recorded)

For recording this we debited all expenses as it increased the expenses and credited the cash as it decreased the asset

the answer should be demonstrations i hope this