Question

When the cash receipts are more than a cash register total of cash sales it is...

When the cash receipts are more than a cash register total of cash sales it is referred to as cash over. I should credit cash short and over, right ?

Homework Answers

Answer #1
  • For this you need to understand the following concept.

Cash, is an asset account having a normal debit balance.
This means that it will increase if debited and decrease if credited.

  • Here, it says that cash receipts are more than cash register total.
    This means that cash account balance in books is less.
    Hence, it is to be increased.
  • For Cash account to increase, it is to be debited (as discussed).
    So, Cash will be debited and Cash Short and Over will be Credited.
  • So regarding your query that whether you should credit cash short and over? Yes, in this case, it will be credited.
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