[Question] BANK RECONCILIATION

[Tat]

We use a manual system of accounting, how do we treat opening and closing cash balances from withdrawals on the bank reconciliation statement. We do not operate a petty cash system.

[Dave A]

You really need to run a petty cash ledger - even if it's the owner's pocket that carries it.

[Tat]

Hi, thanks Dave. We were running a petty cash ledger, however, we were advised to disperse all funds through the main cash by the auditors.