This is common in many businesses, particularly restaurants. Create a ‘Petty Cash’ account as a current asset account.
When you ’top off’ the Petty Cash fund, do the following: Dr. Assets:Current Assets:Petty Cash Cr. Assets:Current Assets:Checking If you spend any money from the Petty Cash account, *that* would be an expense: Dr. Expenses Cr. Assets:Current Assets:Petty Cash If you receive cash *that* would be revenue or ‘income’ and should be recorded in the form received. If in cash, and you are putting it in ‘Petty Cash’ then do: Dr. Assets:Current Assets:Petty Cash Cr. Income If you are just holding the cash receipts separately then do: Dr. Assets:Current Assets:Undeposited Funds Cr. Income And then move the money from Undeposited Funds to Checking when you make the actual deposit: Dr. Assets:Current Assets:Checking Cr. Assets:Current Assets:Undeposited Funds When you deposit money from Petty Cash to Checking do: Dr. Assets:Current Assets:Checking Cr. Assets:Current Assets:Petty Cash You may or may not need to separate ‘Undeposited Funds’ and ‘Petty Cash’. Usually people who use a petty cash account, keep it at a certain level at all times and top it off when it dwindles. It is primarily used for ‘run to the store’ expenses when you can’t purchase something in time from a regular vendor on an AP account. ‘Undeposited Funds’ might include checks as well as cash. Regards, Adrien > On Sep 3, 2019 w36d246, at 2:08 PM, Roderick Anderson <raander...@gmail.com> > wrote: > > This might be on the edge between using GnuCash and Accounting principals. > Any help or suggestions will be appreciated. > > I am the Treasurer for a small 501(c)(3) with all my accounting knowledge as > OJT. Nothing formal. > > I am looking for suggestions on how to account for cash pulled from the > checking account to be used for making change for our fund raising event and > then redeposited into checking. > > In the past (in my ignorance) I treated it as an expense then an income. We > missed a year of the event so I figured now would be a good the time to get > it right. > > That make any sense? > > > TIA, > Rod _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user If you are using Nabble or Gmane, please see https://wiki.gnucash.org/wiki/Mailing_Lists for more information. ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
