Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter - Fraud, Internal Control, and Cash - Self-Test Questions: 15

Answer

A : Cash over or short should be debited for $4

Work Step by Step

The petty cash must have 100 dollars. Since we already have 2 dollars in the petty cash, we have to add 98 dollars from cash account to make it 100. This means that the difference between the receipts and cash is 4 dollars, meaning that 4 dollars should be accounted for by debiting cash short or over account for 4.
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