A company had $43 missing from petty cash that 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)Debit Cash for $43.

Question

Quizplus · Accepted Answer

When there is a discrepancy in petty cash, such as missing funds that cannot be accounted for with receipts, the correct accounting procedure is to debit the Cash Over and Short account. This account is used to record the discrepancies between physical cash counts and the accounting records.

A Company Had $43 Missing from Petty Cash That Was