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LEVEL 2 CASH BOOK

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

Comments

  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 247
    edited October 2017
    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
    AAT
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    ACCA
    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
  • crispycrispy Trusted Regular SouthamptonRegistered Posts: 456
    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.

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