Cash Payment

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1

Hello again.
I am now looking into Cash payments. Its just for small sole trader.
How do i account for my sales correctly?
If i made a sale for £10
I record £10 as sale with customer name and item.
I record £3 as COGS
I withdraw £5 for personal purchase.

My question is,
If i withdraw £5 for a personal purchase do i need to write this down for every time money is taken or not needed as sole trader.

Also Should i record all of this under “petty cash”.

In practice I should also deposit any money left over at the end of each calendar month to proof earnings?

If i had a Cash Tin where I take £5 to go to the shop for personal purchase, I come back the Tin is -£5 but because i have recorded the turnover?

Any suggestions how to keep tabs on this please. Thank you in advance.

2

Can i just keep track off Sales/Expense?
Or if figure is £50 net profit and i have £30 left in the pot at end of month as rest is personal purchase i can just remove 20 from 50 to have a drawing of 20 for personal use is this better?

3

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