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cash book

flipperflipper Just JoinedRegistered Posts: 2

I am doing a practice simulation on foundation, i am entering cash/chqs and bacs payments recieved into the cash book.

I keep getting confused with debits and credits!

Should the total amount in the reciept column be a DR for the main ledger as its cash recieved from customers?

Would the discount allowed be a CR as its reducing what the cm owes and also would the customer account be a CR as well?

I'm so confused! i just thought if the customer pays me money then i CR their account as the debt is been reduced. any invoices i send out go on the DR as it's increasing their debt. Discounts allowed would go on the CR side of the customers acc? When it comes to the cash book i just get so confused with which bit to write CR and DR.

Any hep would be great



  • CullenCullen Experienced Mentor Registered Posts: 592
    Discounts Allowed, are a debit to this account and a credit to the SLCA and the subsidiary ledger, the customer account.

    I was told to remember:
    Discount A LLLLoud, goes on the LLLLeft

    Discounts Received has a C in it so its a credit.

    I only ever learn one side of any double entry as I can usually work out where the other side goes.

    In a cash book, money in is a debit, money out is a credit. So the corresponding debits and credits go the the SLCA or the PLCA depending on whether it is a sales receipt or a supplier payment.

    Discounts never affect the cash book totals. If you think about it, money is either received or paid. That's it.
    The cash book only "records" whether discount has been allowed or received and the double entry for this does not touch the cashbook or Bank in the main ledger.
  • A-VicA-Vic Expertise Guaranteed Registered Posts: 6,970
    them pains debits and credits


    i used pearls for memorie

    debit - P E A R L S - credit
    draw a line down the middle

    P - Purchases
    E - expences
    A - Assits

    o and reverse in subsidery ledger aka sales ledger control
    R - Revenue
    L - liability
    S - Sales

    hope that helps got me through - thanks to my manager :001_smile:
  • LouLou143LouLou143 Feels At Home Registered Posts: 74
    DEAD CLIC is another good one







    Few things I learnt over the years and got me through Foundation and Intermediate!!!!

    Hope it helps
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