User Support Forum

During my accounting set-up, when asked about Cash on Hand (Petty Cash) I entered zero. At a later date a manual check was written for $200 for petty cash. Transaction went like this:

CR 01-1110-000
DB 01-6520-000 (Miscellaneous Expense – Petty Cash)

I’m pretty sure I should have entered that transaction differently, because now I want my Balance Sheet to show that there is Cash on Hand (Petty Cash) and I’m not sure how to make that happen.

I also want to properly account for cash expenditures so the Balance Sheet will reflect the decrease of Petty Cash (or increase when a new influx occurs).

Any help is appreciated,
Susan

I think this is what you want:

Transfer from checking to petty cash (asset)
CR 01-1110-000 checking
DB 01-1910-000 petty cash

Spend money:
CR 01-1910-000 petty cash
DB 01-5350-000 any expense

Hi John,

I made the following transaction for $200:
CR 01-1110-000 Checking
DB 01-1260-000 Petty Cash

However, now my bank balance is off by $200. It now make it look as though I withdraw the petty cash twice. Do I need to do a reverse entry (for the manual check that I had originally written for $200 in petty cash) like this?:

CR 01-6520-000 Petty Cash
DB 01-1110-000 Checking

Susan

Yeah. You will need to reverse the original entry. I missed that the first time.

Thanks, John...my brain was crossing wires and I needed help! Have a good day!
Susan