Sage Instant Accounts help please

Ozzy86

Hi there,

I am doing the revision for the exam and one of the tasks is as follows: Mr X draws out £100 of the bank using cheque number 100001(call this petty cash).He spends £5.50 on refreshements for the office , then he buys stationery for the office for £33.00 inc.VAT, paying also by cash.Could you explain me please what do I do with it, where do the postings go? Thanks a lot.

PhillipP

Firstly, select Bank / highlight the bank account / choose Transfer from the menu above and transfer £100 from the bank account to the petty cash account using reference CHQ 100001.

Next, highlight the petty cash account and select Payments from the menu above.
On the first line make a payment of £5.50 for refreshments (make sure you use the correct nominal code) and if there is no VAT then select VAT code T0.
On the second line make a payment of £27.50 for stationery (again make sure that you use the correct nominal code for stationery) and the VAT of £5.50 will be automatically produced to show a payment total of £33.00

Once complete then the Bank Balance will show as -£100 and the Petty Cash Balance will show as £61.50

If you then want to check the Nominal balances for stationery, refreshments and VAT then select Company from the menu bottom left.

Ozzy86

Sage Instants Accounts

Thanks a lot , finally I know what I am doing.