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July 8, 2022
Question

Cash withdrawl and put in safe deposit box, how to record that correctly.

  • July 8, 2022
  • 1 reply
  • 3 views

How would I record cash being withdrawn from one of our accounts and being stored in bank safe deposit box for emergencies? Credit the bank account and debit misc. expense?

1 reply

BigRedConsulting
Level 15
July 8, 2022

Cash you're sitting on isn't an expense until you spend it. It's an asset, just like cash in your bank account.

 

In this case, create a Petty Cash account. Select either a current asset or a bank account as the type. Then use the new Petty Cash account as the account on the withdrawal recorded in your bank account.