Cashing into bank and tagging to petty cash

Hi,
In the bank account, I tagged money that was cashed into the bank, to petty cash.
But in the petty cash instead of showing as ‘money in’ it’s showing as ‘money out’ so when I try and post expenses that were paid in cash through the petty cash account it’s increasing my balance instead of decreasing it.
What am I doing wrong?
I would like some of the cash that was cashed into the bank to pay off the expense as the expense was paid for in cash. How do I post this?
Thanks.

Hello @S.S

I tagged money that was cashed into the bank, to petty cash.

Just to clarify do you mean you drew some money from the bank them paid for some expenses with the cash?

If so you should show the money out transaction on the bank, tagged as transfer to petty cash
Log the expenses as being paid with the petty cash account.

It sounds like you have the transaction on the main bank incorrect (Money in rather than money out).

2 Likes

This topic was automatically closed after 7 days. New replies are no longer allowed.