A $100 petty cash fund has cash of $16 and receipts of $82. The journal entry to replenish the account would include a

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05-07-2022
Business

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A $100 petty cash fund has cash of $16 and receipts of $82. The journal entry to replenish the account would include a

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Tutorconsortium315idn Tutorconsortium315idn · Answer 1 · 2022-07-16T06:36:48-04:00

A $100 petty cash fund has cash of $16 and receipts of $82. The journal entry to replenish the account would include a debit to Cash Over and Short for $2.

What is the Cash Over and Short Account?

The primary use of the cash over and short account is in cash-intensive retail or banking environments, as well as for the handling of petty cash.

The cash over and short account is an account in the general ledger.
The account stores the amount by which the actual ending cash balance differs from the beginning book balance of cash on hand, plus or minus any recorded cash transactions during the period.
The cash over and short account is an excellent tool for tracking down fraud situations

Learn more about cash over and short accounts here:

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What is the Cash Over and Short Account?

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