[GNC] Non-expense, non-income transactions?

[Adrien Monteleone]

This is common in many businesses, particularly restaurants.

Create a ‘Petty Cash’ account as a current asset account.

When you ’top off’ the Petty Cash fund, do the following:

Dr. Assets:Current Assets:Petty Cash
Cr. Assets:Current Assets:Checking

If you spend any money from the Petty Cash account, *that* would be an expense:

Dr. Expenses
Cr. Assets:Current Assets:Petty Cash

If you receive cash *that* would be revenue or ‘income’ and should be recorded in the form received. If in cash, and you are putting it in ‘Petty Cash’ then do:

Dr. Assets:Current Assets:Petty Cash
Cr. Income

If you are just holding the cash receipts separately then do:

Dr. Assets:Current Assets:Undeposited Funds
Cr. Income

And then move the money from Undeposited Funds to Checking when you make the actual deposit:

Dr. Assets:Current Assets:Checking
Cr. Assets:Current Assets:Undeposited Funds

When you deposit money from Petty Cash to Checking do:

Dr. Assets:Current Assets:Checking
Cr. Assets:Current Assets:Petty Cash

You may or may not need to separate ‘Undeposited Funds’ and ‘Petty Cash’. Usually people who use a petty cash account, keep it at a certain level at all times and top it off when it dwindles. It is primarily used for ‘run to the store’ expenses when you can’t purchase something in time from a regular vendor on an AP account.

‘Undeposited Funds’ might include checks as well as cash.

Regards,
Adrien

> On Sep 3, 2019 w36d246, at 2:08 PM, Roderick Anderson <raanders42 at gmail.com> wrote:
> 
> This might be on the edge between using GnuCash and Accounting principals.  Any help or suggestions will be appreciated.
> 
> I am the Treasurer for a small 501(c)(3) with all my accounting knowledge as OJT.  Nothing formal.
> 
> I am looking for suggestions on how to account for cash pulled from the checking account to be used for making change for our fund raising event and then redeposited into checking.
> 
> In the past (in my ignorance) I treated it as an expense then an income.  We missed a year of the event so I figured now would be a good the time to get it right.
> 
> That make any sense?
> 
> 
> TIA,
> Rod