A company had $43 missing from petty cash that was not accounted for by petty cash receipts. The correct procedure when reimbursing the fund is to:
A)Debit Cash Over and Short for $43.
B)Credit Cash Over and Short for $43.
C)Debit Petty Cash for $43.
D)Credit Petty Cash for $43.
E)Credit Cash for $43.

Question

Quizplus · Accepted Answer

When there is a shortage in the petty cash fund, the correct procedure is to record it in the "Cash Over and Short" account, which is used to track any discrepancies in cash transactions. Therefore, we should debit the "Cash Over and Short" account for the amount of the shortage, which in this case is $43.

A Company Had $43 Missing from Petty Cash That Was