Bookeeping

i our company daily expenses are maintained in this way

our md issue a cheque in the name of the cashier and the cashier will spent the expenses from it

the cashier maintain a excel sheet for Cash in and Out and the monthly sheet is provide to the md

as a accountant

how should i record this cash out and expenses in tally

Replies (5)

Expenses A/c debit to Bank A/c...................

The process of giving cheques to cashier does not effect this entry.

YOU CAN EITHER DO ENTRIES JUST LIKE KEEPING PETTY CASH ACCOUNT.............

WHEN YOU GIVE CASH  TO CASHIER................

CASHIER A/C DR..............

                        TO BANK A/C

WHEN CASHIER INCURRS EXPENSES THEN...........

EXPENSES A/C DR.

                        TO CASHIER A/C......

 

FINAL ADJUSTMENT :-

WHEN THER LIES ANY AMOUNT OF CASH UNUTILIZED WITH THE CASHIER THEN THE DEBIT BALANCE OF CASHIER WILL APPEAR IN BALANCE SHEET...........

 

IN THIS WAY, YOUR DOUBLE ENTRY GETS COMPLETED AND ALSO YOU CAN KNOW THE OUTSTANDING BALANCE OF CASHIER................. AND YOUR BALANCE SHEET WILL BE TALLY........

Firstly, I think, issueing cheque in name of Cashier is not good practise.

However, since it is subject to management's discretion, all that is left is accounting entry.

 

I suggest that,

Create head cash with cashier a/c under Cash & Bank balances.

All withdrawals be entered in there. And rest be accounted normally just as cash account.

I agree with Mr. Tehsinkhan Pathan regarding this ..................

I think that its a better approach to create head cash with cashier a/c under Cash & Bank balances and treat as normal Cash A/c as said by Mr.Ramkrishna because the payment made to outsiders are in nature of Cash payments and should be entered in Payment Voucher while if you do as Mr.Tehsinkhan said then you will have to pass payment entries through Journal voucher.

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