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Help!!!! Posting the CRB to the main ledger

katsutlieffkatsutlieff Trusted RegularRegistered Posts: 459
Please please can someone help with this before I pull all my hair out.

I am studying for my unit 30 and at the moment and have just read though the chapter on Recording Receipts, no probs until the section on posing the cash receipts book to the main ledger.

The text book says ' the CRB is not only the book of prime entry for receipts of money but it is also part of the double entry bookkeeping system in that it forms the debit side of the bank ledger account. Therefore all of the entries made in the CRB are already debited in the main ledger and all that remains in the main ledger is to post the credit entries.

This is where I've come unstuck. When would I have posted the debit entries to the bank account? If I am recording receipt of payment in the CRB, it's because the payment has just be received so I wouldn't have previously posted to the bank account. Credit sales surely would have been posted to the sales account (credit) and the sales ledger control account (Debit), then once payment is received I would assume I would Credit the sales ledger control account and debit the bank account.

I am being really dense please help!!

Comments

  • CJCCJC Font Of All Knowledge Registered Posts: 1,657
    If you read the textbook carefully it says that the CRB "forms the debit side of the bank ledger account" Bank a/c (debit) and CRB are essentially synonymous.

    The treatment of this can be somewhat confusing as sometimes 'Bank' is used and sometimes 'Cash Book' but in the AAT version of things the Cash Book is really just an extended presention of the Bank T-account. Things would be much simpler if they used the term 'Bank' throughout.
  • katsutlieffkatsutlieff Trusted Regular Registered Posts: 459
    Many Thanks.

    So now I understand. Flicking though the BPP course companion it all becomes clear. I couldn't find any references to the Cash Receipts Book anywhere. All I could find were references to the Cash Book which have all sales on one side (debit side), all purchases on the other side (credit side), wrote up as a T account; the CASH BOOK. Bpp split the CASH BOOK into Cash Receipts Book and Cash payment book, each kept separately, but forming the CASH BOOK to enable the balancing off of the accounts.

    I'm not going mad after all, it's just the course companion is different from every other book I have read this weekend. Why do Bpp teach this differently from everyone else. Although reading though their own Basic Bookkeeping companion they teach the Cash Book as a whole. Why the inconsistency?????

    Many Thanks CJC for your help and your post
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