ATM withdrawals

Accounting
1

2 Q’s
Number 1, The set of accounts I am working on at the moment are from a small online social media consultancy company. The bank accounts are not business accounts so I am having lots of trouble deciphering what should and what shouldnt be included in my accounts. There are alot of transfers between personal accounts (current account-directors loan account-investor accounts) the list goes on. How can I account for transfers to and from these accounts? I have capital going into the current account from the directors then loans coming out as well as drawings. Unfortunately the director has little knowledge of accounting and has left quite a mess to fix.

Number 2, How to account for ATM withdrawals from the current account. Do I simply set up a cash or atm account, transfer cash from current account and then enter any transactions into the ATM account???

Thanks again Quickfile, you’re a great help

2

You can set-up your main business account, petty cash is already there and director loan account too under banking. Any movement to and from main account to petty cash or director loan should be tagged as interbank transfers.

3

So this way will also post to the correct journals? And should I then record any transaction e.g withdrawals straight to the petty cash account and allow the system to do the rest? I am presuming I should charge employee expenses to the Petty cash account also.

4

If you have experience in handling single entry records then it should turnout good if not then it will be bit of struggle but eventually you will get there. I suggest compile workings on excel and then do few journals to account for end results