This is a special record set up in Bank Accounts that is used to post purchases made from petty cash. The Petty Cash Account is set up like any other bank account. It is designated as such by selecting it in FILES|Setup Global Options.

The terms Petty Cash refers to out-of-pocket purchases made from a small cash box in your office. Purchases are recorded and paid for like any other, but the balance of the account refers to the actual cash in the box. When the contents of the box are depleted, a check is written from the main account, cashed, and used to replenish the box. The ‘deposit’ is recorded directly into the check register by generating a check from the main account. In the detail of the check, the Petty Cash G/L account is entered as the ‘expense’. This automatically creates a deposit entry into the Petty Cash account check register.