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sophie3
Level 1

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

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?

Solved
Best answer December 10, 2018

Best Answers
qbteachmt
Level 15

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

"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.

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12 Comments
qbteachmt
Level 15

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

"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.

View solution in original post

qbteachmt
Level 15

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

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.

sophie3
Level 1

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

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?
Anonymous
Not applicable

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

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.

jkscatena
Level 2

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

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?

AldrinS
QuickBooks Team

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

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!

Pelita
Level 1

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

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

 

Anonymous
Not applicable

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

Let me help, @Pelita.

 

The above procedure applies to your scenario if you have created a check and used an expense account. Then, you can deposit the amount to the same account used.

 

Another way is to create a bill for the purchase. Since there's a change of $20 for the said purchase, you can create a bill for $80 instead of $100. Then, create a deposit of $20 under Accounts Payable with the name of the vendor.

 

Here' how:

 

  1. Go to Vendors menu and select Enter Bills.
  2. Enter the name of the vendor.
  3. Under the Expense tab, select the expense account used and enter the $80 amount.
  4. Click Save & Close when done.

Then, make a bank deposit for the $20 amount and select Accounts Payable. Make sure to enter the name of the vendor. 

 

 

 

Once done, go back and open the bill. Then click the Pay Bill option. Check the transactions showing on the Select Bills To Be Paid. Click the Pay Selected Bills tab.

 

 

That's it. if you have additional questions about this process, feel free to ask. I'll be here to help you further.

Pelita
Level 1

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

Thanks for the very quick reply!

 

Yes the cheque I created is under an expense account.

 

Is this procedure more advantageous than the one I mentioned? Thinking of which one to follow.

Anonymous
Not applicable

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

For reconciliation purposes, you’ll need to record each of the transactions involved, Pelita.


Below are the steps that suit perfectly for your scenario:

 

 

First, create a bill for $80. 

  1. Click Vendors at the top. 
  2. Select Enter Bills. 

 

Create a checque to pay the $80 bill. 

  1. Open the $80 bill. 
  2. Select Pay Bill at the top.  
  3. Make sure to enter $100 on the AMT.TO PAY 
  4. Enter Check on the Method. 
  5. Click Pay Selected Bills.   

This should leave the vendor with a credit of $20. You can then create a deposit for $20 under Accounts Payable. Here’s how:

 

  1. Click Banking at the top then select.
  2. Select Make Deposit. 
  3. Select the bank account on Deposit to. 
  4. Enter the Vendor's name on Received From. 
  5. Select Accounts Payable under From Account. 
  6. Enter amount and other information. 
  7. Click Save & Close. 

Setting the deposit to Accounts Payable will removed the $20 credit from the vendor's profile. This will also credit the amount back to the bank account. 

 

Please drop by again if there's anything else you need. 

 

 

 

 

Sue542
Level 1

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

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
Moderator

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

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!

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