The income is not reduced by the “cash out” amount. The only area that changes is the way you report the takings for the day. Your physical cash will be down by the amount of the “cash out” but your EFTPOS will be up by that same amount. This means the amount actually deposited for the day doesn’t change.
For example, you (business owner), receive $50 in payment for a widget, and the customer asks for $50 cash out. Therefore you receive $100 payment, but only $50 is declared as widget income. When you give the customer the $50 cash, this is offset by the $50 received by EFTPOS.
All that has happened is you have moved money from one type to another. The income does not change. You still report the total income for the day, and there is no need to manually reduce the amount of income reported. All these movements should be reflected correctly in the z-read of the til at the end of the day.
By the accountant journaling out the cash, this effectively reduces reported income – which is incorrect, as this may result in under reporting income for GST purposes and income tax purposes.
ICB Resource - Cash Transaction Reporting