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) Credit Cash for $43.

Question

Quizplus · Accepted Answer

When petty cash is short, the correct procedure is to debit Cash Over and Short account and credit the Petty Cash account for the amount of cash that is missing. This will account for the discrepancy and ensure that the books are accurate. Therefore, option A is the best choice as it follows the correct procedure.

A Company Had $43 Missing from Petty Cash That Was