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.

• Or use a spike, which is convenient and automatically keeps the receipts in date order until you deal with them.

5.4 Total all the petty cash receipts monthly.

• Write yourself a cheque for the total.
• Attach the receipts to an A4 sheet 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 with a business cheque when the credit card bill arrives.
• Staple all the receipts to an A4 sheet.
• Enter details in the Cash Book, with your name and 'credit card refund' in the supplier column.