Petty Cash - General Journal Entry

You can directly impact the HST account instead of selecting it from the Tax Item column, Shelstock, as these transactions are tied to tax calculations. I'll detail more of this below.

QuickBooks Desktop uses item-based transactions (e.g., invoices or bills) to manage sales tax accurately, as these are tied to tax calculation settings. In your case, you'll need to manually calculate the tax amount and enter it as a separate line in your journal entry.

Refer to the screenshots for guidance on adding the transactions to the journal entry.

Once done, you can run a tax report to review the journal entry. For detailed instructions on managing journal entries, read this article: Create a journal entry in QuickBooks Desktop for Windows. You can also use the transaction journal report to identify transactions that are out of balance and identify incorrect entries.

Upon sharing the information above it's advisable to consult your accountant to ensure the proper accounts are used and transactions are recorded accurately in QuickBooks. They can also provide expert guidance tailored to your situation.

To ensure your accounts align with actual bank and credit card statements, I recommend reviewing this guide: Reconcile an account in QuickBooks Desktop.

As always, you can get back to me if you have any other questions or concerns. I’d be happy to help you.