Question

When recording the amount of cash from the register, which account is debited with the actual amount of cash in the register dealing with short and over petty cash accounts?

A. Petty Cash Account
B. Cash Over Account
C. Cash Short Account
D. Cash Register Account

Answer 1

The correct account to be debited with the actual amount of cash from the register is the Petty Cash Account. Cash Over or Cash Short accounts are affected only if there is a discrepancy.

Step-by-step explanation:

When recording the amount of cash from the register, particularly when addressing short and over petty cash situations, the account that is debited with the actual amount of cash in the register is the Petty Cash Account (Option A). If there is more cash than expected, indicating an overage, then the Cash Over Account (Option B) would be credited. Conversely, if there is a shortage, the Cash Short Account (Option C) would be credited. However, there is no standard "Cash Register Account" specifically referenced in common accounting practices for this purpose (Option D).