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all right chapter six practice test first problem the ENT the entry necessary to establish a petty cash fund should include a debit to petty cash and a credit to cash so that is to establish it uh petty cash is an asset account so by increasing it uh we debit it and then cash is also um an asset account so we credit it next question on a bank reconciliation and unrecorded debit memo for printing checks is deducted from the book balance of cash so we find out from the bank that they charged us for printing checks uh a debit memo is a subtraction from our account uh specifically our book so that is a deduction from the book balance of cash outstanding checks refer to checks basically we've written and they haven't yet been cashed yet that's D number four a company made a bank deposit that hasn't appeared on the bank statement this is a deposit in transit so because when we made the deposit we recorded on our books we need to add that deposit to the bank st

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