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Question
Claire wants to establish a Rs250 petty cash fund for her business. She requested a cheque for Rs250. What is the correct journal entry to record the transaction?
Options:
A .  Debit Cash Rs250 and credit Petty Cash Rs250
B .  Debit Petty Cash Rs250 and credit Cash Rs250
C .  Debit Petty Cash Rs250 and credit Bank Rs250
D .  Debit Petty Cash Rs250 and credit Miscellaneous Expense Rs250
Answer: Option C
:
C
Petty Cash A/c Dr Rs250
To Bank A/c Rs250

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