Posting Petty Cash Expenses to Ledger Accounts

Steps:

• Review analysis columns: Postage $20 and Stationery$31 represent expense totals from petty cash transactions.
• Recognize these as expenses incurred, requiring ledger entries under double-entry system.
• Debit respective expense accounts to record the costs.
• Post $20 to Postage and$31 to Stationery, balancing with petty cash reimbursement.

Why D is correct:

• Expenses like postage and stationery are debited to their nominal accounts in the ledger, per the double-entry bookkeeping rule that increases expenses on the debit side.

Why the others are wrong:

• A: Bank account is credited only during petty cash replenishment, not for individual expense postings.
• B: Expense accounts are debited, not credited, as credits would incorrectly reduce expenses.
• C: Cash account is debited for total replenishment, not broken down by expense type.

Final answer: D