Cash book balancing

annefoth
annefoth Registered Posts: 23
When posting the cash book to the general ledger where there is a balance brought forward in the debit cash or bank columns how does this equate with the postings for the credit analysis columns

Answers

  • milescpareview
    milescpareview Registered Posts: 19
    Cashbook is maintained to record transactions relating only to cash receipts and payments. The entries are recorded in detail. When cash is received, it is entered on the debit or left-hand side of the T-Account. Similarly, when cash is paid out, it is recorded on the credit or right-hand side of the cash book or the T-account. The cash book is balanced at the end of an accounting period by writing the excess of the debit on the credit side as "by balance carried down" to make both sides agree. The balance is then shown on the debit side by "To balance brought down" to start the next period.
Privacy Policy