Guidance wih restaurant accounts

kkelly

Hi All,
I was wondering if anyone can clear this up in my head for me, or indeed has dealt with this before. A restaurant...lets say the till receipt shows £2000 in a day, made up as follows, Food £1200, drink £700 and voucher sales of £100. The journal I would think would be Cr Sales with the net amount of the 1900 and cr vat with the balance and lastly cr a voucher liability account with the £100. I would see the vouchers as a liability until used to pay for a meal. Whats the opposite entry here for the 2K - the bank?

On the opposite side they have making up the 2k, cash lodged of 400, visa 1300, voucher redemption of lets say £260, £42 used to buy some urgently needed items, showing up an extra £2 from God knows where.
The cash lodged and visa are fine but i'm stuck on the others. The voucher redemption would debit the voucher liability account to reduce the outstanding vouchers, but whats the opposite entry? The £42 used to buy urgent items would be debit P&L expense and cr the bank.

Lastly the vat on the vouchers, because this is being used to pay for part of the 1900 for which we are accounting for vat then that sorts that issue I think!! albeit that we are accounting for the vat at redemption time.

I must be having a really bad day that I cant put this together and I'm probably making a mountain out of it, but if someone can put it all together for me I would really appreciate it.

Thanks
Kevin

coojee

The opposite entry is the things that you listed, ie DR Cash 400, DR credit card 1300, DR Vouchers 260, DR expense 40. Somehow you need to make all these DR's add up to the £2000 CR's. Your final journal is:

DR Cash 400, DR CC 1300, DR Vouchers 260, DR Expense 40 and CR Food sales 1200, CR Drink sales 700, CR Vouchers 100.

Not sure about the VAT side as it depends what is VATable of the sales, but whatever you decide the VAT is and what it's on you do DR the income account with the amount of the VAT and CR the VAT liability account.

It sounds like you're trying to do DR Something and CR Sales (with the sales per the till receipt) and then DR cash etc and CR something (with the takings). Just cut out the "something"bit and you'll be right.

Rozzi Rainbow

If you would rather post an income entry and an expense entry rather than trying to cut out the "something" bit, you could set up a cash account for posting these entries through. You should be able to ensure this new account always clears to zero (i.e. your total income postings match your total expense postings) unless any cash is kept on site. In which case, you might want to transfer it to a separate cash in hand account.

kkelly

Thanks a million coojee and Rozzi Rainbow. You were really helpful!!
I can see the wood from the trees now.
Kevin

coojee

Rozzi's way is probably neater and easier to follow in the future as it's all in one place.