Question

You oversee the $250 petty cash for your company. When an employee needs a special item that is not in inventory, you take money from petty cash to purchase that item.

One day, you are short on cash for lunch. You decide to borrow $10 each day for the next 3 days until payday for a total of $30 from petty cash. After payday, you do not have enough to repay petty cash, so you decide to record a cash short/over expense of $30.

Since this is the first time you've ever done this, is this a problem? If so, what steps should be taken to fix this problem? If not, why not?

Answer in a 100 words or more.

Answer 1

Yes, this is a problem, irrespective of, if its the 1st time or a 100th time. You are not suppose to charge your personal expenses to the company expenses.

In order to overcome such problem, you must report to your superior of such mis-conduct, you can ask for some time to repay the expenses back to the account, or have a pay cut in your next payday, or any such arrangement possible. It your duty inform your suupervisor, so that he is aware of any such appropriations done in the account.