cash book-help!!!!!!!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
hi
ive been doing some revision for the exam coming soon! and i always end up with the same problem. i know not all the purchases go into the purchases a/c and the creditors control a/c but i can never remember which goes in which, is it.....
people whohave bought on credit go in the creditors control and 'cash' purchases go into purchases a/c or do ALL your purchases (credit and cash) in the purchases???????????????
please help as this is an ongoing problem for me, gets me every time!
thanks in advance
jo,

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book-help!!!!!!!!

    Hi Jo,

    Credit Purchases

    Dr Purchases
    Dr VAT
    Cr Creditors/Purchases Ledger Control

    Payment to creditor

    Dr Creditors/Purchases Ledger Control
    Cr Cash Book/Bank

    Cash Purchases

    Dr Purchases
    Dr VAT
    Cr Cash Book/Bank

    So, all the purchases go into the purchases a/c but only the credit purchases go into the control a/c. Remember that the creditors/purchase ledger control account is a summary of the creditor accounts in the purchase ledger. Cash customers don't have accounts to summarise.

    Hope that helps

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book-help!!!!!!!!

    thanks thats a big help!

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