Setting up Petty Cash

[stroupesters]

I noticed when I took over the books that we don't track petty cash. I have no idea how to add or track a petty cash account in PowerChurch+. Would love some detailed input.

Thanks much!

[JohnDMeyers]

Create a petty cash asset, similar to a checking account:
01-1118-000 petty cash

Move $50 into petty cash from checking:
CR 01-1110-000 checking $50
DB 01-1118-000 petty cash $50

Spend $15 from petty cash:
CR 01-1118-000 petty cash $15
DB 01-5287-000 misc office supplies $15

[kara]

Create a petty cash asset, similar to a checking account:
01-1118-000 petty cash

Move $50 into petty cash from checking:
CR 01-1110-000 checking $50
DB 01-1118-000 petty cash $50

Spend $15 from petty cash:
CR 01-1118-000 petty cash $15
DB 01-5287-000 misc office supplies $15

When you say "move $50 into petty cash from checking", you mean to write a check for cash and this is the transaction to show that? Sorry, I just can't seem to wrap my brain around this today. Thank you!

[JohnDMeyers]

Yes. That is correct. The money actually comes out of the bank account by way of writing a check.

[kara]

Thank you.