XYZ Company uses an imprest petty cash system. The fund was established on March 1 with a balance of RO 100. During March, the petty cash was replenished on March 15 and March 31^st. the following petty cash receipts were found in the petty cash box during March.

Date	Receipt No.	For	Amount
3rd March	1	Stamp Inventory	RO 39
7	2	Freight-Out (delivery Expense)	21
9	3	Miscellaneous Expense	6
11	4	Travel Expense	24
14	5	Miscellaneous Expense	5
Total Receipts			95

The fund was replenished on March 15 when the fund contained RO 2 in cash. On March 20, the amount in the fund was increased to RO 175.

On March 31^st, XYZ Petty cash fund of RO 175 is replenished when the fund contains RO 6 in cash and receipts of RO 170 for postage RO 95, Freight-out RO 60, and travel expense RO 15.

Based on the information provided you are required to answer the following Multiple Choice Questions.

Question 11

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On March 31, when recording the check for replenishment, the company should:

a.

Credit Cash Over and Short for RO 1

b.

Debit Cash over and short for RO 1

c.

Debit Petty Cash for RO 95

d.

Credit Cash for RO 95

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Question 12

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To replenish Petty Cash Fund on March 31, XYZ company will:

a.

Increase Expenses with 70

b.

Increase cash with 170

c.

Decrease Cash with RO 169

d.

None of the given options

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Question 13

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Making payments from a petty cash fund requires:

a.

None of the given options.

b.

A debit to various expense accounts

c.

A credit to petty cash

d.

A credit to cash

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Question 14

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Which of the following is designed for the Petty cash system?

a.

To meet the needs of small business

b.

To cover the needs of small amount of income

c.

To meet the needs of large business

d.

To cover the small amount of expenses to be paid in cash

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Question 15

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To reimburse the Petty Cash Fund on March 31st, the journal entry will include:

a.

Debit Postage, freight-Out and Travel

b.

All the given options

c.

Credit Cash

d.

Credit Cash Over and Short