Re: [SQL-Ledger-users] Slightly off Topic

[Terry C. <tc...@se...>]

On Mon, 5 Mar 2001, Roderick A. Anderson wrote:

> 1) Anyone have a suggestion of a good general accounting book that would
> blend well with SQL-Ledger?

Self-Counsel Press used to have some practical books. I don't know
what they have these days.

> 2) (An accounting question) How do you (as in not SQL-Ledger specific)
> enter small purchases - stamps, envelopes, paper, etc.  Do you create
> vendor for each place you buy from?

If you plan to do small purchases a lot then you can:
                 (values are examples. use your own)

  Create a G/L 'Petty Cash' Asset account.

  Write a check to 'Petty Cash' for $300.00, cash it and stick
  the money in a cash box somewhere. 

  As you need to use it take out what you need and put the receipts
  (indicate what they are for) and the change back in the box.
  You should always have $300.00 in cash + receipts.

  When the actual cash gets low or the end of the month arrives -
  whichever comes first - total the receipts and write a check for
  the amount. At this point you should have $300.00 cash again.

  Enter a journal entry similar to the following assuming total
  receipts of 275.75 and each expense type totaled.


   DR Fuel                        60.00
   DR Office Supplies             40.00
   DR Misc                          .75
   DR Casual Labour               25.00
   DR Drawings                   150.00

        CR Bank                              275.75

        To Replenish Petty Cash fund.


Note that the Petty Cash asset account always has 300.00 in it.

It's not the only way to do things but it's the one I prefer.


Terry.

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