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HELP ON PETTY CASH PLEASE

please help
I am am recently 'qualified' book keepr in my first post and have constant headaches!
I have transfered monies from main bank account to petty cash account. (new business so starting from scratch)
I need to know what to do next.
Do I wait til end of month and post at this time.
In plain english please:
1/ I've transferred £200 from main bank account to petty cash and withdrawn £200 by cheque from main account and put in petty cash tin. I now have, for example, £6.00 stamps, £5.00 petrol and £10.00 stationary, how do I post now.
I presume petty cash - supplier payment to correct nominal codes (which takes the monies from petty cash and allocates to correct nominal codes but is that it? i am used to doing manually and always thinking about double entry and surely there must be another entry?
Sorry if I sound a bit thick but really trying to learn as quick as possible
Thank you in advance for your replies

LISA NERGAARD

Replies

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Treat petty cash as 'internal bank account'
So you have £200 in petty cash in Sage, but not in the tin, because some of it has been spent.

Don't try to do a supplier payment - that way you would have to set up WHSmith or BP Garage as suppliers and post the petty cash receipts as supplier invoices first. A waste of time!

Simply post them as bank payments to the appropriate nominal code eg. stationery petrol, etc. making sure that the 'bank' you have selected is 'petty cash'.

When you have posted all the receipts, the balance left on Sage in petty cash should be the same as the actual cash in your petty cash tin.

Maybe this is something you can update on a weekly basis to make sure it doesn't get out of control?

Thanks (2)

Entering petty cash on sage

[quote=skylarking]So you have £200 in petty cash in Sage, but not in the tin, because some of it has been spent.

Don't try to do a supplier payment - that way you would have to set up WHSmith or BP Garage as suppliers and post the petty cash receipts as supplier invoices first. A waste of time!

Simply post them as bank payments to the appropriate nominal code eg. stationery petrol, etc. making sure that the 'bank' you have selected is 'petty cash'.

When you have posted all the receipts, the balance left on Sage in petty cash should be the same as the actual cash in your petty cash tin.

 

Thanks for a clear answer as I struggled with the same question.

Just one question from this. I took out cash from my commpany credit card to give me liquid cash for petty cash and also had a cash out fee of £3 for taking cash  from the ATM.

In laymans terms can you tell me now I enter this onto sage. Would I go to BANK > TRANSFER (CREDIT CARD) TO PETTY CASH.

I have set up a petty cash account in sage as well as a credit card account which keep everything separate from the current account. 

thanks in advance.

Thanks (1)

Petty Cash
Hi Lisa

There are a couple of ways you could do this, but I think the easiest is to simply leave the Petty Cash float as it is in Sage.

Fixed Float (Imprest System)
It should always total £200 (cash plus receipts) and when you require this to be topped up, just reimburse it. Total the receipts, and make a cash cheque for the total and post these expenses direct fromt he bank account (usually summarise 7 do as a single entry).

Varying Float
Another option is to let the float level vary & post to & from the Petty Cash account in Sage. Just be aware of controlling the levels of petty cash and expenditure. When you need more Petty Cash, write that cash cheque and do a transfer in Sage from Bank to Petty Cash. Then each month you will need to take all the receipts and summarise them (like above) and enter them as a payment from the Petty Cash account. That should then show the Sage account as equallng the actual cash in the tin.

Hope that helps point you in the right direction.

David Toohey
The Accountants Circle

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