I think talking to him up front as friends would be the best. Explain to him that you would never steal from anyone and reassure him that he must be mistaken, and that something else must have happened to the money that he has possible overlooked, or even misplaced it. Assure him that you understand him, but that he is mistaken.

This is much better than simply denying it. Maintain eye contact when your are telling him this, so that he knows that you have integrity and are being honest. He should believe you after that

I think talking to him up front as friends would be the best. Explain to him that you would never steal from anyone and reassure him that he must be mistaken, and that something else must have happened to the money that he has possibly overlooked, or even misplaced it. Assure him that you understand him, but that he is mistaken.

This is much better than simply denying it. Maintain eye contact when your are telling him this, so that he knows that you have integrity and are being honest. He should believe you after that