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BeanCounter2020


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Treatment of a cash 'float'
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Hi everyone,

 

Can I double check please the correct book keeping treatment to record the following;

 

A church has made a payment of cash, say £50 to a care taker which has been described as a "cash float" to allow him to buy certain items without the inconvenience to him of using his own Money.

 

Thanks

 

 



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Onion4Sage


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Hi,

Use or create a current asset cash nominal code for "Cash Float" and record the receipt of the £50 by the caretaker to that account. When the caretaker submits receipts for items purchased, record the payment(s) to him to the appropriate expense accounts. It would be advisable to obtain annual confirmation from the caretaker that he acknowledges his liability to repay the "Cash Float" on demand.

HTH

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Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel. No set-up necessary. Free 30 day trial.
BeanCounter2020


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Thanks for responding! So, for the initial transfer of £50 to him, you would Cr bank account, Dr caretaker account? (Treated like petty cash?) What would be the subsequent entries, for, say, when he makes a purchase for £10...

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Onion4Sage


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Hi,

Cr the account from which the payment is made and Dr the nominal code(s) relevant to the goods / services the caretaker paid for.

 



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Ian

Ian Brown FCA
Onion Reporting Software Ltd

www.onionrs.co.uk

Sage accounts in Excel. No set-up necessary. Free 30 day trial.
You


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This is basic bookkeeping, grade 1. I suggest you look at the first level of an AAT course.

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