LEVEL 2 CASH BOOK

beckymoody123

Hi im wondering if somebody can help me on a question im stuck on for a cash book entry. The question is this:
Paid £650 to Bennett (Creditor) by BACS £32.50 discount being received.

Now would i enter into the cash book £650 or would i enter £617.50?

Little confused as to if i need to take the discount off before i enter it into the cash book or not?

Thanks in advance

Clintm15

The entries would be:

DR Purchases £650
CR Creditors £650

DR Creditors £32.50
CR Discounts received £32.50

DR Creditors £617.50
CR Bank £617.50

crispy

Hi,

I would enter £ 617.50 as you will matching / reconciling the cash-book to the Bank Statement. The Bank statement will show the actual amount paid to the supplier.