Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
Talk to Sales: 877-683-3280
Hours
Mon - Fri, 5am - 6pm PST
Sat - Sun, 7am - 4pm PST
Product support & help
Need help signing in?
L
lindak1119
Level 7
December 11, 2018
Solved

How do I make an entry for petty cash that is returned back to the petty cash box? What account would I use?

  • December 11, 2018
  • 5 replies
  • 28 views

For example, an employee was give $500, so I entered $500 withdrawal from the checking account and deposit to petty cash, then I entered all her receipts, but how do I account for the $130 she returned to us? It seems like it would be an asset account. Cash on Hand or something like that?

Best answer by qbteachmt

"if I want to keep a the amount returned as a balance in the petty cash box and not deposit it to the checking account, how would I enter that?"

You already have it.

Like I stated:

You take from Checking = it appears in the Petty Cash Bank, representing that money in that person's possession right now.

They bring you the receipts from Spending and their Change.

You enter the Spending = the Petty Cash bank account has a Left Over Balance = not everything was spent. What you are Holding is that amount. You are Holding Cash On Hand, which is being tracked as Petty Cash.

In the Petty Cash bank in QB, you see the balance that you got handed and put into the Box.

5 replies

qbteachmt
qbteachmtAnswer
Level 11
December 11, 2018

"if I want to keep a the amount returned as a balance in the petty cash box and not deposit it to the checking account, how would I enter that?"

You already have it.

Like I stated:

You take from Checking = it appears in the Petty Cash Bank, representing that money in that person's possession right now.

They bring you the receipts from Spending and their Change.

You enter the Spending = the Petty Cash bank account has a Left Over Balance = not everything was spent. What you are Holding is that amount. You are Holding Cash On Hand, which is being tracked as Petty Cash.

In the Petty Cash bank in QB, you see the balance that you got handed and put into the Box.

qbteachmt
qbteachmt
Level 11
December 11, 2018

The original entry is From Checking to PC.

The entry of spending is From PC. She gives you the Change, so you still have PC. You enter the Spending, and the PC balance is what she handed to you.

When you Deposit that to checking, it is From PC.

L
lindak1119Author
Level 7
December 11, 2018
Thanks, but if I want to keep a the amount returned as a balance in the petty cash box and not deposit it to the checking account, how would I enter that?
A
Anonymous
December 11, 2018

There's nothing to enter.

After entering the transfer to petty cash and then the expenses into the petty cash account, the balance will be $130. You're done.

    J
    jkscatena
    April 1, 2019

    My case is a little different as I gave an employee $300 in cash, from Petty Cash (recorded as Expense), then he returned it in full... How do I record the returned money?

    A
    AldrinS
    Level 4
    April 1, 2019

    Hi there, dswayze.

     

    Allow me to step in for a moment and help you record the returned money.

     

    You can enter the return as a deposit to the Petty Cash account. Here's how:

    1. From the Banking menu, select Make Deposits.
    2. Choose the Petty Cash account from the Deposit To drop-down menu.
    3. Change the Date as necessary.
    4. Enter the appropriate details on the following fields:
      - Received From: Choose the employee that returned the money.
      - From Account: Select the appropriate account.
      - Amount: Enter the full amount that was returned.
    5. Click Save & Close.

    For additional insight about this, I'm also including this article: Make Deposits in QuickBooks Desktop

     

    That should do it. Please let me know if there's anything else I can help you with. I'm always here to help. Have a great day!

      P
      Pelita
      September 26, 2019

      Hi,

       

      Just want to ask, is the above procedure (from AldrinS) also suitable for this scenario:

       

      I issued cheque to encash $100 to purchase item. After purchase there’s a change of $20 which I’ll deposit back to the bank account.

       

      When I follow the same steps, the excess of $20 doesn’t show up in the vendor center entries. Is that ok?

       

      Thanks in advance

       

      S
      Sue542
      October 6, 2020

      I have a petty cash account that I use for taking money out and depositing back in, however, when I run a report, it shows everything as a negative amount. What am I doing wrong?

      Jen_D
      Jen_D
      Level 8
      October 6, 2020

      Good to see you here, @Sue542,

       

      May I know which report are you referring to? When you withdraw cash from a petty cash account, and deposit them back, it should show the cash flow correctly on reports.

       

      I have some screenshots prepared to show how the process works:

       

      Once done, here's how you can run a report to show it:

      1. Go to the Lists menu then choose Chart of Accounts.
      2. Find the Petty Cash account and right-click on it.
      3. Tap QuickReport to generate the register's balance report. It should look like this:

      I'm also adding some related articles to help you learn more about the reports in QuickBooks:

      I'll be waiting for your response on this. I want to ensure this is resolved and I'll be right here to help. Have a lovely day!

      Need QuickBooks guidance?
      Log in to access expert advice and community support instantly.
      Terms & ConditionsAccessibility statement