Z-Mart had $43 in missing 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

When petty cash receipts are missing or unaccounted for, the correct procedure is to debit Cash Over and Short for the missing amount. This account is used to record the discrepancies in cash and is closed at the end of the accounting period. Option B and D are incorrect as "cash over and short" and "petty cash" are two different accounts, and petty cash cannot be credited when receipts are missing or unaccounted for. Option C is incorrect as debiting "petty cash" would imply that the physical cash is missing or stolen, which is not the case. Option E is incorrect as cash cannot be credited when receipts are missing.

Z-Mart Had $43 in Missing Petty Cash Receipts