The entry to establish a petty cash fund includes:___________
a) a debit to Cash and a credit to Petty Cash.
b) a debit to Cash and a credit to Cash Over and Short.
c) a debit to Petty Cash and a credit to Cash.
d) a debit to Petty Cash and a credit to Accounts Receivable.
e) a debit to Petty Cash and a credit to Petty Cash Payable.

Respuesta :

Answer:

c) a debit to Petty Cash and a credit to Cash.

Explanation:

According to the golden rule of double of entry that a giver should be credited while a receiver is debited, the cash account is the giver in this case would be credited while the receiver,the petty cash account would be debited on the other hand.

The correct option which corroborates my explain above is option C.

Option A is wrong because the reverse was the case.