When you handle change at the till - that is, when you add or withdraw cash to give change - your accounting accounts are affected. There are two main accounts involved: the cash account and a clearing account.
When depositing change:
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The cash account increases - because you put notes in the cash drawer.
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The settlement account decreases - to balance the accounting entry.
It is thus recorded as:
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+ in the cash account (e.g. 1910)
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- in the settlement account (e.g. 1911)
On the bill of exchange account:
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The cash account decreases - you take money out of the drawer.
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The settlement account increases - as a contra entry.
It is thus recorded as:
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- in the cash account
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+ on the settlement account
Do you want to avoid bill of exchange activities in the accounting records?
If you don't want exchange deposits and withdrawals to appear in your accounts, you can enter the same account for both cash and settlement in your accounting records - for example 1910.
In this case, the exchange transactions are recorded with both plus and minus in the same account, which means that:
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The amounts cancel each other out
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There is no impact on the final accounting base
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Only the actual cash sales are visible
Tip for use
Many people choose to use account 1910 for both the cash account and the cash clearing account - especially if they want to simplify their accounting and focus only on actual sales.