Question

At the end of the day, the cash register's record shows $1,278, but the count of cash in the cash register is $1,259. The correct entry to record the cash sales isa. Debit Cash $1,259; Credit Sales $1,259.b. Debit Cash $1,259; debit Cash Over and Short $19; credit Sales $1,278.c. Debit Cash $1,278; credit Cash Over and Short $1,259; credit Sales $19.d. Debit Cash Over and Short $19, credit Sales $19.f. Debit Cash $1,278; credit Sales $1,278.

Answer 1

Answer:

b. Debit Cash $1,259; debit Cash Over and Short $19; credit Sales $1,278.

Explanation:

Since the actual cash is more than that in cash register that is more in hand than the amount recorded, thus, all the amount shall be recorded.

For this, firstly actual matching cash that is in the books and that in hand amounting $1,259 shall be recorded as cash

Further the shortfall $1,278 - $1,259 = $19 shall be recorded as cash over and short, basically this account is part of cash which cannot be verified as and when this is verified, it is adjusted and settled in cash account.

Finally, the cash received will be against sales, thus, total sales shall be credited with $1,278