Rectifying cash accounts

We have some discrepancies in our cash accounts.

What is the correct way to adjust the balance if money was lost/stolen or found?

My immediate solution was to just do an inter account transfer without a recipient account (for money lost/stolen).

I’m terrible at accounting so if possible I would need step by step instructions :open_mouth:

Just do a payment from the cash account and charge it to an appropriate expense account eg General Expenses

i do not think that would be proper accounting practice.
i guess another cash account needs to be created and an inter account transfer to the same have to be recorded. just like a clearing account in bank accounts. in case the lost money is found it can be transferred back to the original cash account.

Cash Vs Contingent Expenses (BS Vs P&L through a Payment)

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The reason this is not the right approach is that the shortage or overage would just be moved to another asset account without resolving the accounting problem. A shortage or overage must be accounted for as an expense or income.

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I looked at that article. Any idea how I actually do this in manager?

What account do I need to add (if any) and how/where do I do the amendment? Is it a journal entry? If so a sample would be great.

Create a new Expense Account if you want to report on the loss separately in your accounts.If not use on of your existing expenses accounts

Then do a payment transaction for the missing amount and select the account where the loss will be expensed - either the new account you created or an existing expense account