This account is variously named in different banks. Some would call it shortage and overage of cash, but the term "overs and shorts" is considered a good title because in larger banks it embraces much more than cash itself. Deficiencies of debits which must be made up by charging this difference account are shorts; de-ciencies of credits conversely are overs. That is to say, in the latter case the assets are over the liabilities by the amount of the deficiency in credits. In such a case a credit must be made to the difference account. To illustrate: Assume that a depositor was given credit for $1,509 in a miscellaneous deposit consisting of checks and currency, but that a check he deposited was $67 instead of $69. The check was assumed to have been $69 on account of a bad figure. The correct amount of the check was discovered only after the depositor had been given credit on the books. The general ledger entries to reflect the situation thus far are as follows:

Debit: Overs and Shorts (45)........

$ 2

Debit: Cash Items (14) ....................................

67

Debit: Cash (11)....................

1,440

Credit: Due to Depositors (37).....

$1,509

On the succeeding day the liquidation of this over and short entry would be accomplished as follows:

Debit: Due to Depositors (37)........

$ 2

Credit: Overs and Shorts (45)......

$ 2

Auxiliary Record Of Overs And Shorts

It is well to operate two auxiliary books, one for overs and one for shorts, each showing in debit, credit, and balance columns the situation with respect to each item of difference and its disclosure. The difference between the balance of the one book and the other should equal the balance of the general ledger account.