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July 8, 2022
Question

Cash withdrawl and put in safe deposit box, how to record that correctly.

  • July 8, 2022
  • 1 reply
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How would I record cash being withdrawn from one of our accounts and being stored in bank safe deposit box for emergencies? Credit the bank account and debit misc. expense?

1 reply

BigRedConsulting
July 8, 2022

Cash you're sitting on isn't an expense until you spend it. It's an asset, just like cash in your bank account.

 

In this case, create a Petty Cash account. Select either a current asset or a bank account as the type. Then use the new Petty Cash account as the account on the withdrawal recorded in your bank account.