How Do I Record Petty Cash Transactions?

How Do I Record Petty Cash Transactions?

Any income or expense transaction can be recorded using cash as the payment method by selecting it specifically from the drop down list of offered during transaction entry.

Select cash as the method of payment, the system does the following bookkeeping

Income         Dr.     Cash
                     Cr.     Income Heading Selected

Expense       Dr.    Expense Heading
                     Cr.     Cash

If cash is banked select Bank Accounts, Deposit.  The amount entered in the Cash Deposited box is used to increase the Bank balance and decrease the petty cash (cash on hand) balance.  Complete the boxes, the asterisked boxes are mandatory and click Save.

 

 

 

 

To take cash out of the bank and top up the petty cash tin use Bank Accounts, Withdrawal.   This reduces the amount in the bank and increases the value of petty cash on hand.  Complete the boxes, the asterisked boxes are mandatory and click Add.

 

 

 

 At the end of the reporting period before filing the IFA report, review the Accountant, View ETB (extended trial balance) and check the balance on the petty cash heading for reasonableness.  The system displays how the balance is made up if the heading is clicked.  Take note of the autoref numbers so that items can be edited later via the Income, List Income and Expenses, List Expenses screens if the payment method needs changing.

 

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