How to record the cash payment out of cash till

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  • Updated 4 months ago
Hi I have  a beginner question: I recently bought a cafe and have been constantly paying cash to supplier out of the till. How do I record all the cash payments. I also shouldn't record the full cash sale  to the bank account since I didn't bank that much. Should I set up as another bank account (call cash payment ) under the asset or current liabilities? thank you.   
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Greensky

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Posted 4 months ago

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Kevin Russell, Accredited Partner

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DONT DO IT. Problem solved. Or write a cheque to petty cash and put that in the till and take out say five hundred dollars a week. It's not really good practice to be paying suppliers in cash. What will you do when cash no longer exists in five years?
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Graham Boast, Accredited Partner

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Hi Greensky

Here is a way to do it that ticks all the boxes.

Set up a new Bank Account in Reckon One called Cash Transactions or Paid from Till. It’s not a real Bank Account - just a way to record transactions,

Record your sales for the day as an invoice. You can split the sales by category (food/drinks) if you like, but ensure the GST is correct.

Now start recording the tender as separate Receive Payments: eft as per the settlement gets banked in your real bank account, Repeat this for Cash banked. Separating these two payments will help you reconcile.

Lastly, record the balance of your invoice to the cash transactions account.

Now, record your expenses you paid for out of the till as a series of payments - one transaction per payment, ensuring GST is correctly recorded,. Also record till discrepancies (the $2 coin that rolled under the fridge) and drawings (the $20 you took from the til, to pay the hairdresser). You should and must come back to a zero balance,

Good luck with the new venture!

Graham 0409317366
graham@reckonhelp.com.au
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Kevin Russell, Accredited Partner

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Hi Graeme. At least we won't have this problem when cash disappears. This NPP thing sounds fascinating.