Cash Payments

System

If a cash payment is received then its money coming in and assuming its someone that owes you money ie a debtor:<BR><BR>If you put it into your till:<BR><BR>DR Cash account<BR>Credit Debtor<BR><BR>Then if you bank the money it would be<BR><BR>Debit Bank<BR>Credit Cash accouny

System

Cash Payments

Cash receipts are a funny thing.<BR>A cash receipt from a customer means someone who is paying for the goods there and then, ie by cash, debit/credit card or cheque as opposed to at a later date, so they aren't debtors.<BR>The double entry for this is debit bank with the whole amount paid in, credit sales with the net amount and credit vat with the vat element. Nothing goes in the control account because that is for debtors.<BR>Cash payments are the same but in reverse if you know what I mean!<BR>Hope this helps