The cash short and over ledger account, which records the difference between the total of the cash register tape and the actual cash counted from the register:

Question

Quizplus · Accepted Answer

The cash short and over ledger account represents the discrepancy between the cash register tape and the actual cash counted. Since this difference does not affect the bank account balance, it is not included in the bank reconciliation or deducted from the bank account balance in the ledger. Instead, the cash short and over account is closed to the profit or loss summary account at the end of the accounting period to reflect any adjustments to revenue or expenses resulting from the discrepancy. It does not appear as a liability on the balance sheet.

The Cash Short and Over Ledger Account, Which Records the Difference