Cash Book

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
Hi,

I was wondering if someone could clarify something for me. I have a Remittanmce list which gives and entry to put in the cashbook:
£545.14 from Hoopers - cash discount £16.86.

The headings are:
Details;Total;VAT;Cash Sales;Sundry;Discounts Allowed.

Do I put £545.14 in the total & Sales Ledger column, with £16.86 in discount

OR

Put £545.14 to Sales Ledger, £16.86 in Discounts, work out the VAT amount, and then the total would be the sum of all these columns.

Please help - none of my examples have VAT and a discount and I'm tying myself in knots trying to figure out the right way to do this.

Thanks to anyone who replies.

Comments

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

    Hiya

    Hoopers is one of your Debtors - therefore the VAT would have been entered already when you did the Sales Day Book.

    The only time you would use the VAT in the cashbook is if it is an individual sale that has nothing to do with Debtors or Creditors - i.e a one off payment.

    Hope that helps

    L x

    Therefore, your first answer is correct.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Cash Book

    Thanks LouLou,

    I was driving my self nuts trying to figure that one out.

    M

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