I am currently working on Sage 50 professional version 2013.
I am having problems working out what to do when staff borrow petty cash money (bank1230) out of the petty cash account then it is money is deducted from their wages which is paid through bank 1200. Do i need to transfers/ journals or both.
Assuming that you post a standard payroll journal (and so credit nominal code 2220 with the net wages due), you could post the borrowings as petty cash payments to net wages. These borrowings plus the payment of the (reduced) wages from the bank will clear the net wages balance.
If the borrowings aren't going to be taken off their wages in that month, you might want to set up a staff loan nominal code. You could then post the borrowings to this account and, as they are deducted from their wages, do the following journal entry: DR Net wages, CR Staff loans.
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Pearce & Co - Chartered Accountant and Chartered Tax Adviser
the women who i have just taken over from was still using ledger books then doing a journal on Sage for everything at end of the month so I cant make out what she has been doing and the nominal link to post payroll has never been set up.
I have been just putting payroll on as a bank payment to wages (1600)
