A company had $43 missing from petty cash which was not accounted for by petty cash receipts.The correct procedure 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

The correct procedure when petty cash is short or over is to debit or credit the Cash Over and Short account to balance it out. In this case, since the petty cash is short by $43, we would debit Cash Over and Short for $43.

A Company Had $43 Missing from Petty Cash Which Was