Question

When reconciling petty cash, you determine that the total withdrawals according the petty cash slips is $169.00. Since the fund started with $200.00, there should be $31.00 remaining in the petty cash box. When the cash is counted, there is only $28.00. How is the discrepancy entered in the journal?

Since there is a $3 overage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is credited $3, and the Cash account is credited $172.00 to replenish the fund.

Since there is a $3 overage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is debited $3, and the Cash account is credited $169.00 to replenish the fund.

Since there is a $3 shortage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is credited $3, and the Cash account is credited $172.00 to replenish the fund.

Since there is a $3 shortage of cash, each account the disbursements are charged to is debited to total $169.00, the Cash Over and Short account is debited $3, and the Cash account is credited $172.00 to replenish the fund.

Answer 1

I am going to say the first one. It is between two for me, but you would have to debit the cash short and over, so it is more like an expense. Cash over, you would I think credit in order to get revenue.

Answer 2

It was the 3rd one