Posting Cash book to Sales/Purchase control accounts

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Can anyone clarify something for me?<BR><BR>I have a cash book with purchase and receipt transactions on it and a balance brought down on the 1st of July.<BR><BR>Each of my Purchase and Sales control accounts also show a brought down balance at the 1st of July.<BR><BR>I have a question that asks me to transfer my cash book transactions to the relevant control account.<BR><BR>I know that i have to add the total of each side up and post in the relevant control account with the reference as being cash book but would i include the balance brought down as well in the total or do i assume that the control accounts and cash book were all reconciled on the 1st of July.<BR><BR>Any help welcome as i am getting slightly confused

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Posting Cash book to Sales/Purchase control accounts

    Hi <BR><BR>I can understand your confusion ! The balances brought forward on your Sales/ Purchase control accounts will include items that have not gone through the cash book eg. sales to a customer will increase the sales control account or invoices posted to the purchase control account will again increase the account.<BR><BR>By posting the items from the cash book to the control accounts you are posting literally the cash received or cash paid. Therefore cash paid will reduce the both the sales and purchase control accounts.<BR><BR>If you have excel I can send you a rough example or send me your figures and I will show you the relevant debits and credits.<BR><BR>Hope this helps<BR><BR>Regards<BR><BR>Roz<BR><BR>roztench@blueyonder.co.uk<BR><BR>

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