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

[Michael Hendry]

> On 4 Sep 2019, at 00:29, Rich Shepard <rshepard at appl-ecosys.com> wrote:
> 
> On 9/3/2019 3:08 PM, Roderick Anderson wrote:
> 
>> 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.
> 
> Rod,
> 
> I have an asset account called 'Petty Cash'. Most of the time it has a zero
> balance but when I need to fuel my diesel pickup truck (which I drive
> to/from client sites) I'll withdraw cash from the checking account and enter
> it in the books as a transfer from checking (credit, withdrawal) into petty
> cash (debit, addition).
> 
> When I fill the tanks I'll enter that transaction as a credit (withdrawal)
> from petty cash and a debit (addition) to the vehicle fuel account.
> 
> If I were using petty cash to make change what I'd probably do is add all
> the cash received and add that to the remaining petty cash in the Income
> 'fund raising event' account. Then when I deposit the cash in the checking
> account I do the reverse account transfer from one asset account to another
> asset account.
> 
> I also do account transfers between the business checking and business
> savings accounts when I move funds from one to the other. Transfer accounts
> are your friend for moving amounts between accounts in the same parent
> account type.
> 
> Regards,
> 
> Rich

Morning, Rod.

From the dark days before computers my general medical practice kept books marked “Petty Cash” and “Cheques Received”, which were “emptied” periodically into our bank account. Petty Cash could be spent on small sundry items such as milk and coffee for staff, stationery supplies etc, and was generally left with a small (positive) balance - the Cheques Received box would be completely cleared periodically by a bank deposit.

This method was readily transferred to a computer system when these came along.

As Rotary Club treasurer with a forthcoming fund-raiser needing a cash float I can simply hold back on Petty Cash deposits in the weeks before it, or withdraw cash from the current (checking) account.

Because of the closure of our local bank branch (albeit with electronic facilities for paying in notes and cheques) I tend not to make the twenty-mile round trip every time we have coins to deposit.

Regards,

Michael