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

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The cash short and over ledger account is used to record any differences between the actual cash counted from the register and the total of the cash register tape. As it is a ledger account, it is not included on the balance sheet or deducted from the bank account balance in the ledger. Instead, it is closed to the profit or loss summary account at the end of the accounting period to account for any gains or losses due to cash shortages or overages. It is not included in the bank reconciliation, as that only deals with reconciling the bank statement balance with the ledger balance.

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