The Cash Book

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi there,

I am currently transferring all my info(creditors, debtors, rent, motor van, wages etc...) from the cash book into seperate accounts in the main and suBsidiary ledgers.

I am stuck however, with transferring opening balances, which are the first entry on the debit side of the cash book.

Whish account do i transfer the opening balances of the cash book to in the main ledger? a capital a/c?
or do i ommit the opening balances altogether as it is classed as money already in the business, similar to a contra entry?

Thanks,

Ben.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Hi Ben,

    If the initial amount paid into the business in the cash book (debit side) is money from the owner then yes it would go on the credit side of the capital account. If the money is from a loan to the business you could open a loan account and enter the amount on the credit side)

    Regards,
    Sarah
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Thanks Sarah,

    The thing is, i'm not sure it can be classed as Capital as it looks like opening balances brought forward from the previous month? would this still count as Capital, therefore it would go in a Capital account?

    It's driving me crazy!

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    whoops sorry. I pressed the wrong button,
    sarah
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Hi,
    I have just thought - I was presuming that this ia a new set of accounts and you are starting from scratch. If you are not do you know if the info from the cash book has been put over into the nominals last month. If it has you do not have to do anything with the opening cash book balance just transfer the nominals accounts.

    sarah


  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Hi Sarah,

    I am completing an assignment called the cash book, which asks of me to transfer the information from the cash book, including the cash and bank balances brought forward from last month, into the general, sales and purchase ledgers, so i do not have any info from the previous month, other than the starting balnces brought over. I guess it could be classed as starting from scratch, i'm not 100% sure really.

    Does anybody else have any idea as to where i should put these balances brought forward?

    Sarah, where would you put the figures?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Hi Ben,
    In that case you would need to transfer all the nominals ie. heat, stamps and stationary ect to the relevent nominal account (General ledger).

    Any payment recieved from customers would go in their individual account in the Sales ledger on the cr side (it is a dr in the cash book)

    Any payment made by you to suppliers (from the cr side of cash book) goes in the purchase ledger on the dr side.

    You do not need to do anything with the opening balance.

    Hope this helps. Ask away if you need any more help,

    Sarah

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Hi Sarah,

    That's the way i've done it. Transferred all the info from the cash book to the general and subsidiary ledger's, but ommited the opening balances.

    I hope this is correct, thanks for your help!

    Ben.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:The Cash Book

    Your welcome

    sarah

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