> On 9 Sep 2020, at 15:25, Michael or Penny Novack <stepbystepf...@comcast.net> > wrote: > > On 9/8/2020 11:32 PM, Adrien Monteleone wrote: >> I've seen suggestions in accounting texts (and use myself) an account called >> 'Undeposited Funds' as a Current Asset. Checks and currency destined to the >> bank (but not there yet) are recorded here when received. >> >> Regards, >> Adrien > > Yes, the term "petty cash" has traditionally had a different meaning. In a > very small business, might actually be currency but in a large one likely its > own bank account. And a subsidiary set of books. The idea was to reduce the > load on the treasurer/chief accountant and not clutter the main books with > trivial detail. > > In the petty cash books would be each transaction, each box of pencils, box > of reams of paper, flowers for the boss's reception room, etc. Then say once > a month the petty cash account would be "refreshed" with the total spent and > each category of expense closed to the main books. Thus the parent "office > supplies", "postage", etc. and not each box of pencils or roll of stamps. > > Michael D Novack
In my past life as an NHS GP, most of our income came from our NHS contracts, but we received some income directly from patients for non-NHS work such as foreign travel immunisation, certificates and employment-related examinations (e.g. for heavy goods vehicle drivers). We recorded this in a petty-cash book and a cheques-received book. Drawings from petty cash for sundries and refreshments seldom exceeded the contents of the cash box, which was being topped up by cash income with the excess being periodically paid into the bank along with incoming cheques. Our accountant never complained about this way of working, so I assumed it was acceptable. In the context of a small Rotary Club, cash income is received at community events and there rarely a need for cash expenditure on the day. Occasionally, though, someone has to nip out for supplies part of the way through an event, and it’s convenient to be able to deal with that in cash on the day. This probably won’t be an issue for Chris Green, who would be better served by an Undeposited Funds asset account. Regards, Michael Hendry _______________________________________________ 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.
