Basic Double Entry Book-Keeping

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:23AM in AAT student discussion
Happy new year everyone!

Sorry for the basic question, but am i on the right track here...

1. When a company invoices a client:
Income CR
Client DR

2. When invoice is paid:
Client CR
Cash DR

3. When refund/change is given to client
Expense DR
Client CR

and...

Client DR
Cash CR

4. When interest is received
Interest Receivable CR
Cash DR

Thanks,
Sue

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Basic Double Entry Book-Keeping

    1. CR. Income (Sales)
    DR. Debtors Control Account (usually the customers are kept in a seperate ledger and the total of that ledger is kept in the nominal, perhaps you do not do that though)

    2. CR. Debtors Control Account
    DR. Bank

    3. DR. Income. (Sales)
    CR. Debtors Control Account.
    When raising a credit note.

    CR. Bank
    DR. Debtors Control Account.
    When refunding the cash.

    4. Aye

    So bascially all correct some petty stuff on my part!

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