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nikki26
Level 1

Cash receipts

Cash receipt are taking for services rendered, rather than being banked they have been transferred to petty cash. How do I record this?

1: I need to update the income line on the profit and lost

2: I need to update the petty cash account on receiving the cash

 

I would appreciate knowing the double entry for the above to ensure we are recording correctly.

 

Is this done by a Journal. thank you :)

1 Comment
RCV
QuickBooks Team
QuickBooks Team

Cash receipts

Thanks for checking in with us and providing us in-depth details of your concern, nikki26.

 

To record the cash receipt, we'll need to create first a petty cash account. When moving cash from your bank account into petty cash, you should see it in this account. Here's how:

  1. Click the Gear icon on the top menu.
  2. Select Chart of Accounts.
  3. Tap New.
  4. From the Account Type drop-down, choose Bank.
  5. From the Detail Type drop-down, tick Cash on hand.
  6. Enter Petty Cash for the account name.
  7. The opening balance will be created when you move money from the checking account by writing a check or transferring funds. If you already have money to use for petty cash, enter the amount in the Balance field and choose the as of date.
  8. Press Save and Close.

Then, If you wrote a check for cash, we can create a check and choose Petty Cash as the payee. Let me show you how:

  1. Click the + New icon.
  2. Select Check.
  3. Tap Petty Cash as the payee. Select +Add new if petty cash isn't in the list of payees.
  4. Enter the details in the Check's column.
  5. Press Save and Close.

To learn more about this one, see the Set up and use petty cash article. For your question 1 and 2, we recommend reaching out to your accountant on how to properly record this one through a  journal entry. From there, they'll provide you details on what posting accounts you'll need to apply for. Feel free to visit our Reports page for more insights about creating and managing your reports in QuickBooks. 

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Just reply to this post and I'll get back to you. You have a good one.

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