Our accounts year end was May 15 - everything went smoothly - however - I posted some entries into Petty cash Payments for a member of staffs May general expenses.
These were not settled up until June so in theory they were outstanding at our year end. When these expenses were paid by a direct payment out of the bank the usual method is to post the amount as a transfer to petty cash ( which become s a receipt) and then net them off during the petty cash reconciliation. BUT Dumbo here has recorded the bank payment as a stand alone bank payment . Don't ask me why ! So I have now got the entries in twice. I cannot do a journal entry? as I gather you cannot do a journal entry into a bank account. Junes current bank account is also reconciled ( well it would be because I entered the expenses payment into the bank current account)
Hi Marine
Im not sure why you would key these entries twice in the first place. If the payment for the expenses is made from the current account - just key it that way, as it isnt a petty cash payment and you are adding an extra transaction for no reason, which then can lead to errors. Unless I misunderstand you. On the misunderstanding (Im knackered with doing so many hours for the last six weeks so please bear with me) - Im not sure I get exactly what the issue you have now is. Am I correct in saying the Current account is correct, its just the petty cash that is wrong as is the actual expense account as the entry has been debited twice? Is so - just credit expenses (quite right about the journal entry - so instead just do) as 'Bank payment' icon from cash using expense code. Im assuming here that you havent closed off the year end period. If you have then Im also assuming the amount is not material so wouldnt worry too much - post it on 1st June with a note to show when it shouldve been posted.
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
