How to Calculate the Cash Amount in a Fund Before Replenishment

What is the amount of cash in the fund before the replenishment?

Is it $300, $260, $40, $48, or $32?

Answer:

The amount of cash in the fund before the replenishment is $252.

When dealing with petty cash funds, it's important to know how much cash is available before replenishing the fund. In this scenario, we are given information about accumulated receipts and a cash shortage. To calculate the initial cash amount in the fund, we need to take into account the accumulated receipts and the cash shortage.

To determine the initial cash amount in the fund, we subtract the cash shortage from the accumulated receipts. In this case, the accumulated receipts total $260, and there is a cash shortage of $8. Subtracting $8 from $260 gives us an initial petty cash fund of $252.

Therefore, the correct amount of cash in the fund before the replenishment is $252. This amount is obtained by subtracting the cash shortage from the accumulated receipts, providing us with the initial petty cash fund amount.