and now we will learn how to record deposits with cashback for expenses what exactly happened that
caused you to use the deposit window instead of making a sale receipt well you receive cash
from a customer for a service you did not immediately deposit the cash into the bank
instead you use some of the cash for expenses or for non-business reasons for example let's
imagine on February 22 we receive $900 cash for 3 video hours for Betty $100 of the 900 was used to
purchase supplies probably from Staples 200 of the 900 was used to pay UPS for a delivery and
the remaining 600 was deposited so what's going on here well you must use the deposit window despite
its limitations because you didn't deposit the cash you spent from cash that the customer handed
you and let's imagine the deposit number is 6 1 6 1 6 1 because there's always some kind of
confirmation number or transaction number in this case it'll be the deposit number so how
do we record this well it's very simple in the top right we click the plus sign and then we
click bank deposit ok the date of the deposit was February 22 now it already knows the bank
account that we deposited from under receive from we're going to choose the customer Betty because
that's where you put the name now of course this is asking us for something that we will
learn in a future video double checking a human error that you could make something we're going
to learn soon let's close it out the account is video income because we earned video income
from Betty now go all the way to the right in the amount field in the amount field you have
to put the total that you actually received from hold on the total you actually received from the
customer pushing the tab key on the left of your keyboard we'll move the cursor to the next line
so the video income that we earned is 900 now I agree with you the amount of the deposit was only
600 that's because we're not finished but you still have to acknowledge the total income that
you earn on the first line on the second line we record the fact that we paid staples for supplies
$100 okay notice it made it bigger you know why very important when you record cash back you have
to put the minus sign next to the amount of the money that you spent for the expense with cash
back then push the tab key on the left of your keyboard notice it decreased the total deposit
you should do it for the next cash expenditure to UPS ups you spent for delivery expense which is a
pia which is down here delivery expense and the amount you paid for delivery was 200 okay well
excuse me from the wrong field okay the amount you paid was 200 but you should put minus 200
and then push tab notice the deposit goes down to the amount that was actually physically deposited
so this is going to go into video income for the full 900 that you earned this is going to
go into supplies for the amount that you paid for supplies and it will increase supplies this
200 is going to go for delivery expense and it will increase the amount that you paid for
delivery even though it's decreasing your bank account and this would be the way to record it
as far as the check not a deposit number 6:161 I recommend you put it in the top line for the
reference number I guess it really doesn't matter as long as it's somewhere but it's probably a good
idea to put it in the reference number of the top line now when we click Save and close we
know that things are recorded appropriately and now let's check the accounts to save to see if
they increased correctly well if we go to reports and we open up my trial balance first let's see
if the 600 not nine hundred was recorded in cash and Chase Bank I open up the Chase Bank
account by clicking on it and look the very latest transaction february 22nd or only 600
because it says it's split between several accounts so we know that's correct let's go
back to the summary which is the trial balance now let's open up supplies ok double click and
you can see the last purchase of supplies with February 22nd for a hundred dollars
it came from a deposit and notice it increased the amount you spent on supplies by a hundred
will check one last one that's right the last one to check is delivery expense double click
on the number and you can see the last delivery expense for two hundred that increase the amount
that you paid for delivery by two hundred was done by this deposit on February 22nd