Extended Trial Balance

[Granby11]

I am doing bank and cash reconciliations and does anyone know how I should treat the cash withdrawn from the bank by cheque - do I put it straight to Drawings in the ETB, or should I show it going through the Cash Account. Also how do I show the cash withdrawn using a cashcard - it still shows as a debit on the bank statement but it was not withdrawn with a cheque.<BR>Very confused!!<BR>Thanks

[sarah1]

If the cash is for drawings then dr drawings and credit bank account.<BR>If the cash is for business use then it needs to dr to the relevent expense account. When drawing cash using a cash card you still treat it the same as if it was a cheque but you might use a different reference eg. a reference off the cash till receipt. Hope this helps.

[Granby11]

That helps a lot - thanks.

[xfsgpr]

I think one should also mention that if the cash withdrawn is to meet day to day expenses then one should do the following:<BR><BR>Dr Petty Cash<BR>Cr Bank<BR><BR>With cash withdrawn.<BR><BR>When any expenses are paid for items such as milk, sugar etc then book-keeping is as follows:<BR><BR>Dr Sundry expenses<BR>Cr Petty Cash<BR>with the amount of expense.<BR><BR>Hope this proves useful.<BR>