 Hello, in this lecture we will define cash overshort. According to fundamental accounting principles, while 22nd edition, the definition of cash overshort is income statement account used to record cash overages and cash shortages arising from errors in cash receipts or payment. Therefore, the cash overshorts account is really that account that's going to shore up the problem of the recording of cash if there is a difference between what we believe the cash should be in terms of sales oftentimes and what we actually have in cash. We're going to have to put that difference to some account. The cash overshort will track those differences. For example, if we had a cash register recording the cash as the sales go through for a certain time period, whether that be a day a week or a month, we can generate a report that will basically have the cash sales show us what the cash sales should be for that time period. If we actually count the cash and we have something different, in this case, the count being 560, the report being 570, we're going to have to record that difference, of course, when we report this. How would that go? Well, we're going to say that debits and credits will be cash debited for what we have, the actual currency, the actual money that we counted. We're going to credit the sales for what was reported, what we believe we actually sold according to the cash register. The difference then is what we need in order for the debits to equal the credits, which in this case will be that $10, which will be the cash overshort. So we're going to record that cash overshort. Hopefully it's going to be a fairly small amount, a fairly immaterial amount that we can then track that balance and see if there's any trends in that balance and if there's anything we need to do about that cash overshort amount.