Cash Withdrawal for expenses

[Vikas Garud]

"Xeena Wallington" <xeena at tiscali.co.za> wrote on 31/-7/08

> I wonder if you can help with this one.

> When I withdraw cash from the bank for expenses, I want to record that 
> withdrawal, but then allocate the various things I buy, e.g. R400 petrol, 
> R300 groceries, etc.  I am finding it difficult to do this and still see the 
> amount of the cash withdrawal in the register, without looking at the 
> splits, so when it comes to reconciling with the bank statement I have to 
> look at the splits each time.

> Is there an easier way of managing cash withdrawals that are spent on 
> various items which need to be recorded separately.  I read somewhere that 
> Gnu Cash is more user friendly than Quicken, but in this instance I have to 
> disagree.

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).

HTH.

Vikas Garud