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 have ever done this, is this a problem? If so, what steps should be taken to fix this problem? If not, why not? Sometimes there can be errors while making change for a customer or recording a check incorrectly. What are some of the controls we can put over cash that would help prevent errors?

Answer 1

ANSWER:-

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 miss-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 supervisor, so that he is aware of any such appropriations done in the account.

answered by: anonymous