Cash Shortage

8.1.7 In case the cash examination disclosed cash shortage and as soon as the cash shortage has been definitely established as shown in the Auditor's certification, the C/M Accountant shall draw a JEV to take up the cash shortage.

a. Recognition of loss of cash (cash shortage)


Account Title

Dr. Cr.
Due from Officers and Employees xx
Cash - In Local Treasury

xx
To record the cash shortage discovered during the cash examination



b. Receipt of COA decision granting relief to the BT for the cash shortage


Account Title

Dr. Cr.
Loss of Asset xx
Due from Officers and Employees

xx

To close the receivable and other deferred credits accounts due to COA Decision No. ___ dated _____ granting relief to the BT for the shortage incurred.





c. Receipt of Payment for cash shortage due to COA decision


Account Title

Dr. Cr.
Cash - In Local Treasury xx
Due from Officers and Employees

xx

To record restitution of cash shortage





Cash Overage

8.1.8 In case the cash examination disclosed cash overage, as determined by the auditor, the amount shall be forfeited in favor of the government and an official receipt shall be issued by the BT.



Account Title

Dr. Cr.
Cash - In Local Treasury xx
Miscellaneous Income

xx

To record cash overage discovered during the cash examination





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