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Pence

  • Associate
  • Practice Licence
  • 7 posts
  • # 94478

Hi all,

Just a quick question.  I have been helping out in a small office & the owner refuses to bank the full amount of money received if it has pence i.e 250.60, he'll bank the £250 & either keep the 60p or chuck it in a drawer in the office.  I have been clearing the customer account fully, posting to the bank account the amount actually banked i.e £250.00 & posting the pence i.e 60p to drawings is this correct?  I wouldnt have bothered too much but it happens everytime he goes to the bank & could end up being a fair amount within a year.

Many thanks

Tania





 

  • Fellow PM.Dip
  • 788 posts
  • # 94483

Hi Tania,

Oh the joys! If he is a sole trader then posting it to drawings is fine.

Why not suggest that the odd pence goes into a Petty Cash Account and when there is a substantial amount it could be changed to notes and banked?

If it mounts up to quite a lot he will appreciate and hopefully understand why it should be banked in the first place!

Marilyn  

  • Associate
  • Practice Licence
  • 7 posts
  • # 94485

MM Bookkeepingsaid:

“Hi Tania,

Oh the joys! If he is a sole trader then posting it to drawings is fine.

Why not suggest that the odd pence goes into a Petty Cash Account and when there is a substantial amount it could be changed to notes and banked?

If it mounts up to quite a lot he will appreciate and hopefully understand why it should be banked in the first place!

Marilyn  ”


Hi Marilyn,

Thank you for your reply.  I've not long qualified & will not doubt in time come to understand the quirkiness of some people & how to deal with them!

Smile

  • 491 posts
  • # 94495

Hi Tania

I come across this quite frequently with businesses that take cash - I always put the exact 'takings' to a 'Cash in Hand' account, then when they put money to the bank, just do the transfer from the 'Cash in Hand' account to the bank account. Keeps it tidy.

Carol  

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