Recording cash withdrawal from current account

Accounting
1

Hi there,

I withdrew £10 in cash to use as petty cash and I am wondering if someone can point out how I deduct £10 from the current account so it shows in the petty cash account.

Thanks

Jamie

2

Hi Jamie,

I’ll take you through the steps one by one. Screenshots are taken from my test account.

  1. Input the transaction on your bank account (unless you upload a bank statement or use the feed, in which case you may already have it):

    1082×40 4.55 KB

  2. Click ‘Tag Me’, and select ‘Bank transfer between accounts’:

  3. Select the petty cash account:

    You could even create a rule here to process any transactions down as ‘Cash withdrawal’ (in my case) to automatically tag as a transfer to petty cash. Just tick the checkbox

  4. Click ‘Save’
    The corresponding transaction will now also be created on your petty cash account. When you pay for something using cash, you can just mark it as paid from the petty cash account rather than your current account

I hope that helps!