An employee used company credit card for personal use. They gave us back cash in hand to return the money.
I can either use the money on petty cash or deposit into our bank account.
question is which journal do i have to do to reflect the credit card and cash in hand?
Thank you,
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Dr employee loan Cr credit card
Dr cash in hand Cr employee loan
Or do it in one and leave out the employee loan.
Thank you,
I dont have employee loan, so will do:
DR Petty Cash and CR Credit Card
Is that ok?
Depends how you post the credit card transactions in the first place. Contra or loan account springs to mind.
This is one instance I wouldn't be 'cutting corners'.
4 journal lines instead of 2 may show greater accountability as to what 'actually' happened.
If no 'employee loan' nominal, maybe create one, use wages control, or some other 'control account'. Afterall you didn't withdraw cash from the credit card.
Obviously, materiality may have a bearing on how you account for it. £3 is one thing, £3K may require something entirely different. Furthermore, regularity may also be a consideration... a one-off may determine an alternative treatment to a weekly occurrence.
That said, so long as you have a sufficient audit trail (within or outside if the software), small amounts are unlikely to attract much scrutiny!
"I dont have employee loan"
A loan is a debt viewed down the other end of the derder. (And if there was no debt, why did the employee repay it? In fact, what did the employee repay?)
DKB mentions quantum. I'd add period. If there were no sleeps between using the card and handing over the cash, that feels to me different to the situation where there were many sleeps separating the transactions.