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What entry should be made for an ATM withdrawal?

edited February 2015 in Accounting

Since the ATM transaction is directly linked to your bank account, it is actually a withdrawal from your bank account.


First create a new ledger called "Cash Withdrawal" in the expense category.


Suppose you withdrew Rs. 5,000 from an ATM, create a JV for the following entries:

 

Debit: Cash Withdrawal for Rs. 5,000

Credit: Your bank Rs. 5,000

 

Then on 31-Mar, you can move the entire balance in Cash Withdrawal to Household Expense

 

So, any cash used for expense, keep it under Cash Withdrawal

Any other cash, keep under Cash on hand


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