We have only used petty cash a small number of times and because of this, it was always a deduction out of the cash drawer. For 2021, we have set a monthly budget and have money separate from the cash drawer.

However, for 2020, how would we classify the transactions when the payout for petty cash was done before the deposit into the bank for sales. I have records of each transaction and how much was taken out but wondering how to show the cash that the expense was taken from. Essentially each month that had a withdrawal would balance out to $0 with no carry-over.