Video Buster had $62 in extra cash in the petty cash box at the end of the day. The correct procedure is

Question

Quizplus · Accepted Answer

The correct procedure is to credit Cash Over and Short for the amount of extra cash in the petty cash box. This account is used to record any differences between the amount of cash in the box and the amount that should be there according to the petty cash log. It is used to keep track of small amounts of cash that may be lost or stolen and to prevent errors in the accounting records. The Cash account should not be credited or debited for petty cash transactions, as these are recorded separately in the Petty Cash account.

Video Buster Had $62 in Extra Cash in the Petty