We use petro cards for fuel. The amount is transferred from the bank to the Petro Card which is also treated as a bank. Whenever we fill fuel, we pay from the Petro Card Bank. Whenever we fill fuel we get a cash back also. How do i record it.
Just like you have distribution account for expenses, you also have distribution account for cash back item which is normally categorized as business income. So accounting $10 as Cash Back Income will add to your Fuel Card account. In your Petro Fuel Debit Bank account with the following three transactions, you should have $110 ending balance. ($200 transfer payment - $100 expense + $10 income = $110 balance).