Tagging Petty Cash

Hi,

I took £100.00 out for petty cash at a sales event.
We then made money and deposited it all in the bank along with the the petty cash.

How do I tag this correctly in the bank account as i cant see a way to set that incoming transaction against the petty cash and the sales takings at the same time.

Thanks for your help.

Ben

You should use the petty cash account to show all cash movements. The petty cash account acts as a virtual cash box and tracks all cash movements.

Cash Withdrawals:

Tag all cash withdrawals as a transfer from the current account to the petty cash account.

Cash Deposits:

Firstly the cash sales payments need to be logged as being paid to the petty cash account as shown in the example below:

When you deposit the money in the bank, tag the cash deposit in the current account as a transfer from petty cash, if you deposit less than the full amount of the cash sales, the balance is held in the petty cash account, although you may also make cash purchases and therefore you would similarly log any cash purchase payments as being made from the petty cash account.

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