Cash Withdrawal for expenses

[Tommy Trussell]

On Thu, Jul 31, 2008 at 10:09 PM, Vikas Garud <vikas at techqual.com> wrote:
> The way I do it is to have a "cash" account.  The withdrawals from bank are
> deposited into this account.  The expenses towards petrol, groceries, etc.
> are made from the cash account.  That way there is single entry for cash
> withdrawal from bank; it is transferred to cash account - deposit into cash
> account.  There are multiple withdrawal/debit entries for expenses from the
> cash account.
>
> Reconciliation happens for the single entry of cash withdrawal from Bank.  The
> expenses are from cash account and not directly from bank (as in reality).

I wouldn't get too distracted by the Cash account terminology, but I
believe the account provided in the default GnuCash trees is called
"Cash in Wallet," which may help you visualize the concept. You are
withdrawing money from the bank account and putting it in your wallet
account. As you make "cash withdrawals" from your wallet, you record
the expenditures into your various expense accounts. Then once a month
or so you reconcile Cash in Wallet by counting the actual money left
and entering a correcting transaction to account for any money spent
from the wallet but not recorded. (I use the Expenses:Miscellaneous
account for that purpose.)