How to record transactions in a bank statement.
We record transactions such as withdrawing money from any of the company bank accounts or when we receive money in our bank accounts. Such transactions are paying suppliers, receiving payment from customers etc.
Suppose you withdraw money from the co-operative bank account for purpose of operating the petty cash, record the transaction as follows:
Step 1. In the accounting overview, open the statement of your bank in this case, Co-operative bank and fill in the details as shown below i.e. In the accounting overview, open the statement of your bank in this case, Co-operative bank and fill in the details as shown below. E.g. -20,000 for our case. -ve because you are removing money from the account
N.B: The label will appear on all account reports related to this entry.
If the transaction adds money to the bank account, just type the amount as shown below. +ve because you are adding money to the account.
N.B: for the label as shown below, indicate the label when either of the situations occurs otherwise leave it blank.
Select a supplier when you will be paying them their payment or refunds.
Select a customer when receiving payment from them or when refunding them.
For the purpose of withholding tax.
When paying salaries/wages.
Withdrawing of depositing in directors funds.