Record keeping for small business

Example - cash payments book (PDF, 40KB)

Explanation of cash payments book entries

C	Payment of $110 to Tas Media for advertising is a business expense (the owner received a valid tax invoice from Tas Media). They: record the full amount under 'Non-capital' in the GST section can claim GST credits on one-eleventh of $110, so they record $10 under 'Claimable GST' record the net amount (that is, the amount excluding GST) under 'Advertising' in the payments section.
D	Payment of $330 for fuel. This is a part-business expense as half the bill was for fuel for a private car, which is a private expense. They record: the business portion of the expense ($165) under 'Non-capital' in the GST section the GST amount $15 (one-eleventh of the $165 business portion under 'Claimable GST' the net business expense ($150) under 'Motor vehicle' in the payments section the private percentage (50%) and $165 under 'Drawings'. a note under 'Comments' to show why they have not claimed the expense in full.
E	Payment of $550 to Bill's Painting is a business expense. They record: the full amount under 'Non-capital' in the GST section the GST amount of $50 (one-eleventh of $550) under 'Claimable GST' the net business expense ($500) under 'Repairs and maintenance' in the payments section a note under 'Comments' to show the purpose of this irregular expense.
G	This drawing of $600 cash is for personal or non-business reasons and is a private expense. They: Record the $600 taken from the till under 'Drawings' need to add back the $600 cash drawings to the recorded daily takings - see the cash receipts book as they cannot claim GST on private expenses add a note under 'Comments' to show this is not a business expense.
H	This payment was to top up the petty cash account, reimbursing it for expenses paid from petty cash. Some purchases had no GST. They record the: total figure under 'Non-capital' in the GST section actual GST they paid ($20) under 'Claimable GST' net amount of $230 under any relevant column in the payments section - as none of the petty cash purchases were for regular, recurring expense categories, they record the net amount under 'Sundries'.
I	This fruit and vegetable purchase from Dave's Fruit & Veg is GST-free so there is no GST on the invoice. They record the: full amount of $600 under 'Non-capital' in the GST section same amount under the relevant column in the payments section (there is no GST to claim or subtract from the full price).
K	Wages paid. They do not record wages in the 'Total purchases' section. They record the net wages payment of $695 under the relevant column in the payments section. There is no GST on wages they paid.
M	A delivery van is a capital purchase. Capital purchases typically involve items such as equipment or machinery that is intended to be used over several years, rather than everyday expense items. They record: the full price of $16,500 (made up of a cheque payment of $11,000 plus the $5,500 trade-in) under 'Capital' in the 'Total purchases' section the full GST amount of $1,500 under 'Claimable GST' as the vehicle is used only for business the net purchase price of $15,000 under 'Capital' in the payments section a note under 'Comments' to show details of the transaction.
N	This drawing of $195 is for private living expenses for the business owner and is not a business expense. They: record the $195 under 'Drawings' Cannot claim any GST add a note under 'Comments' to show this is not a business expense.
O	They: do not record super they paid in the 'Total purchases' section record the employer contribution of $81.00 under the relevant column in the payments section do not include GST.
	They have included an extra transaction in the cash payments book for bank charges. This charge was shown on the My Business bank statement and needs to be recorded in the cash book - refer to Bank reconciliation statement. They: record a fee of $15 in the 'Non-capital' column of the GST section record the same amount under 'Govt and bank fees' in the payments section do not pay GST on the bank charges, so they cannot claim GST.

Sections within Sample cash books and activity statement

• Sample transactions for cash books
• Example - cash payments book (PDF, 40KB)
• Example - cash receipts book (PDF, 38KB)
• Examples: Business activity statement