A Ledger account used to record the difference between in "cash in hand" and the beginning amount of cash plus the cash receipts for the day.
Amount to show in Cash short and over a/c = cash in hand - opening cash in hand balance + cash receipts for the day
This account shows the miscellaneous income or expense. If the account is debited (cash shortage) it means that there is misc. expense which has to report in income statement and if the account is credited it implies that there is misc. income which is to report in income statement