Cash

Cash, with account type Cash, is the ledger for physical notes and coins in the office cashbox or petty cash tin. It is debited when a customer pays in cash or when cash is drawn from the bank and credited when small expenses are paid out: photocopy paper, tea, a taxi fare. Because cash leaves no bank trail, the ledger should be counted against the box at least weekly and every payment should have a voucher or receipt behind it. The Mode of Payment named Cash points at this account on Payment Entries and at the POS. A credit balance here is impossible in real life and usually means a receipt was never entered.

Cash balance = Opening cash + Cash receipts + Withdrawals from bank - Cash payments; must equal the physical count.

1. 01Go to Invoicing > Journal Entry > New or Payments > Payment Entry with Mode of Payment Cash.
2. 02Debit Printing and Stationery Rs 1,500 and credit Cash Rs 1,500 for the photocopy paper, attach the receipt, and Submit.
3. 03To top up the box, post a Payment Entry Internal Transfer from the bank to Cash.
4. 04Open the Cash ledger from Accounts Setup > Chart of Accounts and compare the balance with the count in the box.
5. 05Post any difference by Journal Entry to Miscellaneous Expenses or Write Off with an explanation.

Choose Cash as the paid from or paid to account on a Payment Entry or Journal Entry for small cash dealings.

Dr Printing and Stationery Rs 1,500, Cr Cash Rs 1,500 for photocopy paper bought from the shop next door.