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

[Roderick A. A. <raa...@ti...>]

On Mon, 5 Mar 2001, Terry Carney wrote:

Terry,

Thanks for a very excellant plan.  Us non-accountants have a pretty steep
learning curve and with tax season in the US in full swing my normal
channels are _rather_ busy.
   It will get me going in the right direction for now.  After a little
more reading and bothering the accountants I know I should even get prtty
good at this.


> 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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