Good day everyone, I just started to use wave few days ago.
How do i record petty cash transactions?
On 1st July, I withdraw via ATM $1000 from my business bank account to be use as petty cash for this month. I bought stationery and office supplies for $240 so far. So balance in cash is $760 in my office.
I have no accounting experience. Not familiar with debit and credit. Until recently i just recorded my company transactions in just a simple excel sheet.
I have a few questions.
1- How do i records the $1000 atm withdrawal from my company bank account to be used as petty cash?
2- Under what category should i place this transaction?
3- There's no category called Petty Cash. Does the balance petty cash $760 in my office, is it a debit or credit?
Sorry i am not familiar with accounting term.
Also I had injected $10000 in April and another $5000 in May into my business bank account as initial startup capital. Under what category should i place this transaction?
4- Is it under Cash on Hand or Owner Investment or any other suitable Account/Category?
I really appreciate any explanation on where to place all these transactions.
Thank you in advance.
Hi @alpinehub . Although we don't have an account worded "petty cash", this is essentially what the "Cash on Hand" account is supposed to be used for. If you transfer funds into that account from and create a $1000 expense for it, it will accurately depict $1000 in cash spent.
In regards to the $10,000 in April that you injected into your business, please create an Income Transaction in your Transactions page where you list the Account as the bank account it was deposited into, and the categorization as "Owner Investment/Drawings". T
System
Posts: 412 admin
Comments
Good day everyone, I just started to use wave few days ago.
How do i record petty cash transactions?
On 1st July, I withdraw via ATM $1000 from my business bank account to be use as petty cash for this month. I bought stationery and office supplies for $240 so far. So balance in cash is $760 in my office.
I have no accounting experience. Not familiar with debit and credit. Until recently i just recorded my company transactions in just a simple excel sheet.
I have a few questions.
1- How do i records the $1000 atm withdrawal from my company bank account to be used as petty cash?
2- Under what category should i place this transaction?
3- There's no category called Petty Cash. Does the balance petty cash $760 in my office, is it a debit or credit?
Sorry i am not familiar with accounting term.
Also I had injected $10000 in April and another $5000 in May into my business bank account as initial startup capital. Under what category should i place this transaction?
4- Is it under Cash on Hand or Owner Investment or any other suitable Account/Category?
I really appreciate any explanation on where to place all these transactions.
Thank you in advance.
Hi @alpinehub . Although we don't have an account worded "petty cash", this is essentially what the "Cash on Hand" account is supposed to be used for. If you transfer funds into that account from and create a $1000 expense for it, it will accurately depict $1000 in cash spent.
In regards to the $10,000 in April that you injected into your business, please create an Income Transaction in your Transactions page where you list the Account as the bank account it was deposited into, and the categorization as "Owner Investment/Drawings". T