Simple Book-keeping

5. Cash Purchases

5.1 Pay the cash out of your own pocket.

5.2 Write details of the purchase on the receipt.

5.3 Keep the receipts in your Petty Cash file.

5.4 Total all the petty cash receipts monthly.

• Pay yourself for the total amount.
• Staple the receipts together and file in Purchases Paid.

5.5 Enter the details in the Cash Book.

5.6 You can treat purchases by personal credit card in exactly the same way.

• Refund yourself the total of all the business purchases when the credit card bill arrives.
• Staple all the receipts together.
• Enter details in the Cash Book.