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The Cash Book - one column or two!?!?

JaffasGirlJaffasGirl Trusted RegularRegistered Posts: 387
Hi guys,

I've been strugling with the cash book and it's really disheartening because I thought I understood it!!

In my notes on it (given by my learning provider) it shows the cash book with seperate columns for cash and bank, citing this as general practise in business. This I found no problem and managed to post this as normal. My problem came when I was given a case study, in which I was given a months worth of transactions and told to put them in the correct subsidiary books and then post them to the relevant ledgers. When I came to mark my work with the answers provided they have only put a bank column in the cah book ( even though it clearly states 'cash sales' in the transactions list) and when payments are made in cash they are posted to the petty cash book. Now this seems to contradict what they have said in previous units?!? Or am I not understanding what counts as a 'cash transaction'

Surely there should be a record of money that comes into the business that is too big for the petty cash book, and not a cheque or bacs transfer or the like?

Sorry if this seems really obvious to some, but I would really appreciate the help, this is not the first time my learning provided has changed something in the questions without explaining how or why it would be done!!

P.s Sorry if there are spelling/grammar mistakes on this post I'm posting it from my iPhone and I can't look at the whole post without getting annoyed!!


  • Gem7321Gem7321 Experienced Mentor DevonMAAT, AAT Licensed Accountant Posts: 1,438
    Cash sales normally covers everything that isn't a credit sale. Normally it means something that has been paid for straight away whether by cash, debit card, credit card etc.

    The reason for using 2 columns might be for ease of seperating the output VAT between the cash and credit sales.

    In AAT land cash sales are normally banked and not paid directly into petty cash. Any receipts into petty cash should be from the bank.

    I HTH a little!
  • JaffasGirlJaffasGirl Trusted Regular Registered Posts: 387

    Also, would you count a cheque as a cash payment? as it could be drawn at the time purchase but also takes 4 days to clear...


  • lmiddlehamlmiddleham Feels At Home Registered Posts: 71
    Hi Em

    If you provide goods/service and they pay immediately with a cheque I'd count it as a cash sale.

    It's only if it's a sale to a supplier who gets a certain amount of time before they have to pay that makes it a credit
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