We recommend that you draw a cash cheque for Petty Cash, however, if this is not possible:

1. Manually deduct the amount taken for Petty Cash from the Cash on the Deposit Supplement (do not enter it as Cash Taken).
2. Enter the amount as an Expense, selecting 'Direct Debit' as the payment type, allocating the amount to your Petty Cash Expense Ledger
3. When reconciling the Deposit Supplement in the Cashbook, also reconcile the Direct Debit amount. In this way it will balance and keep the accountant happy.