Cash received for cash sales instead of banking I would like to use to top up Petty Cash

Question

Hi guys,

New to this. We seldomly receive cash payment for our services but from time to time we do. My preaccessor used to run to the bank with it. I would like to use this cash to top up my Petty Cash tin so I don't have to write a cheque and run to the bank to cash it. Would you be able to advise how to best record this?

Thank you,

Monika

Tracey_H · Accepted Answer

Hi @Monicka11

Thanks for your post. One way to handle this would be to change the Deposit to Account to the petty cash account when recording the Receive Money/Receive Payments transactions.

Another option would be to leave the Deposit to Account as the bank account when recording the payment transactions. Then record a Transfer money transaction for the amount added to petty cash. The Transfer from account would be the bank account and the Transfer to account would be the petty cash account. In the Reconcile accounts window you would need to manually reconcile the deposit (payment) with the withdrawal (Transfer money) by ticking those transactions.

If you had multiple cash payments, you could tick the Undeposited Funds option when recording the Receive Money/Receive payments transactions. Then process the bank deposit transaction in the Prepare Bank Deposit window by changing the Deposit to Account to the petty cash account and selecting all the cash payment transactions.

I'd also recommend reconciling the petty cash account for audit purposes.

Please let me know if you need further help.

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