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L
lumberjackhoops-
February 16, 2025
Question

Cash for change for cash box

  • February 16, 2025
  • 1 reply
  • 0 views

We are a non-profit and withdrew cash from our bank account to have starting change in our cash box for concession sales.  When our event was over, it was deposited back into our bank account, along with the cash sales.  What kind of account do I set up for the cash withdrawal so I can tie it to the bank transaction?  This account will ultimately always go back to a zero balance after any event when we deposit it back.

1 reply

Rainflurry
Rainflurry
February 16, 2025

@lumberjackhoops- 

 

Set up a bank account called 'Petty Cash'.  When you withdraw cash from your checking/savings account, make a Transfer (New > Transfer) from checking/savings to Petty Cash.  Record any changes to Petty Cash using sales receipts, etc. (if applicable).  Then, when you deposit the cash back into your checking/savings, make another Transfer from Petty Cash to checking/savings.   

L
lumberjackhoops-Author
February 16, 2025

Thank you @Rainflurry  Additionally, from all the sales, there were also some vendors that were paid in cash.  What's the best way to record that?  For example, let's say there's $3,000 total in cash at the end of the event.  $200 was paid in cash to Vendor A, $300 paid to Vendor B.  What's left to deposit in the bank is $2,500.  This is deposited; $1,600 goes back to petty cash, $900 is reported as income.  For the payments to Vendors A and B, is it best to record those as an expense, and then paid in cash from Petty Cash account?  Thank you.

Rainflurry
Rainflurry
February 16, 2025

@lumberjackhoops- 

 

"Additionally, from all the sales, there were also some vendors that were paid in cash. What's the best way to record that?"

 

You got it.  Use an Expense (New > Expense) transaction.  Select Petty Cash as the payment account.  

 

At the end of the event (before expenses paid to vendors A &B), you have $3,000, and I'm understanding your description correctly, these are the transactions you should have;

 

1) The original withdrawal of cash (Transfer from checking/savings to Petty Cash) for $1,600. 

Petty cash balance = $1,600

 

2) Revenue (QB calls it income) of $1,400.  The revenue should be recorded using sales receipts if possible and deposited to Petty Cash on the sales receipt(s). 

Petty cash balance = $3,000

Revenue = $1,400

 

3) Expenses paid to Vendor A ($200) and Vendor B ($300).  Use Expense transactions and select Petty Cash as the payment account. 

Petty Cash balance = $2,500

Revenue = $1,400

Expenses = $500

Net income = $900

 

4) Transfer $2,500 from Petty Cash back to checking/savings:

Petty Cash balance = $0

Revenue = $1,400

Expenses = $500

Net income = $900

 

Make sense?

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