Cash Count Differences
Code: 5267
👁 Views: 87
Account Information
| Financial Statement | Income Statement |
| Normal Balance | Debit |
Definition
Differences arising from physical count of cash on hand compared to book balance. Debit balance (shortage) is an expense, credit balance (surplus) is income. Placed under administrative expenses as it reflects internal control efficiency.
📐 IFRS vs US GAAP Accounting Treatment
IFRS
IAS 16 / IAS 38
PPE / Intangibles
US GAAP
ASC 360 / ASC 350
PPE / Intangibles
❓ Frequently Asked Questions
Q: How is a cash shortage recorded?
A: Entry: Dr. Cash Count Differences (expense), Cr. Cash in Hand. If the responsible party is identified, charge them: Dr. Employee Receivables, Cr. Cash Count Differences.
Q: How is a cash surplus recorded?
A: Entry: Dr. Cash in Hand, Cr. Cash Count Differences (other income). If the reason is not identified, it remains as other income.