Home For AAT student members AQ 2016 Foundation Certificate in accounting General discussion - Foundation level

Trial Balance Help

I'm constructing a trial balance and have entries to make where it says, 'Smiths LTD. paid by cheque for £98'. Seeing as they have now paid, what do I put this under in the trial balance? With Sales and SLCA I assume entries are made there when money is owed. I also have some paid by cash as well or purchases. I've always been terrible with knowing what to do with Cash entries.

Comments

  • Afair13Afair13 AAT Student, AATQB Posts: 5
    Hi India,

    I believe you should

    DR Bank £98.00
    CR SLCA £98.00

    At a quick glance I believe that is correct, please if not someone correct me.

    Hope that helps.
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    IndiaHarlow93
  • DannyT90DannyT90 Surrey AAT Student, AATQB Posts: 159
    edited April 2017
    Yes that is correct and remember to credit the individual account of Smiths LTD.

    Cash entries will go through the cash book so if you receive cash you will debit the cash book and credit the other account in question.

    Anything you pay out is a credit in the cash book and a debit to the account your dealing with I.e. Purchases account.
    Afair13IndiaHarlow93
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