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This is a question that came to me from a friend who keeps the books for a social club.
When they hold an event they generally get the members to pay for any supplies that they need and then reimburse them. The problem comes because they normally round up to the nearest pound when refunding the member. For example Tony buys all the bread needed for a BBQ costing £64.17, which he pays out of his pocket, the social then refunds him £65. The question is how do you put this through the books?
Would you:
Cr: Cash 65.00
Dr: Bread 64.17
Dr: Over-Reimburse 0.83
And would the Over-Reimburse account be an equity account, like drawings are?
Thanks
Torben
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