Consolidation of informal accounts

[Mike or Penny Novack]

>
> Now I've explained all that here is my query:
>
> the recording of all the transactions, while the gnc way, does 
> sometimes result in 20 transactions in a month split across Expense 
> accounts like
>
> newspapers
> coffee/tea
> snack
> beer
> vegetables
> yogurt/milk
> watch battery
> birthday card
> etc
>
> so the recording is good, I know I owe my shopkeeper nn-ish so I get 
> some extra cash when available and it keeps us both honest.
>
> However, many of the details of happenings 5 years ago don't matter 
> now, e.g. the birthday card for someone that shares the same birthday 
> as my sister cost less than GBP1 at the time, does it matter now?
>
> A monthly (over n years ago) or weekly (over nn months ago) 
> consolidation would be sufficient detail for GAAP purposes.
>
> At the moment I'm thinking of exporting the transactions doing 
> unmentionable things to them and importing again
>
> the sum remains the same [1]
>
> However, I can't help thinking someone must have come up against the 
> problem of a lot of tiny transactions being consolidated for honest 
> accounting purposes before.

This is the reason that often "petty cash" has its own set of books (can 
have main books and subsidiary books).

That removes this sort of clutter from the main books. You might 
consider doing this with "cash in wallet" and all these little 
liabilities. Them perhaps once a month you enter the "net" transaction 
to the main books. Take a look at a typical accounting books which shows 
separate accounts for a "petty cash" fund. Then try to see how in your 
case, besides cash moving from main books to petty cash and expenses 
(the net in each category) moving form petty cash to main books you ALSO 
have the net change in liability moving.

Michael D Novack

PS: But yes, all those little things are recorded forever SOMEWHERE. But 
could be in a subsidiary book archived periodically and new one opened.


>
> [1] hello anyone else that got the music ref
>

-- 
There is no possibility of social justice on a dead planet except the equality of the grave.