CASH BOOK!!

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Me Again!!

Just looking at the cash book and found some interesting stuff on other forum posts ie: what to do with cash/credit purchases and what entry they are (CR/DR) in each of the relevant accounts.

Can someone remind me what to do on the opposite (sales??) side of the cash book?? ie: for sales AND payments by debtors. :(

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    Hiya

    In the sales day book you would debit the gross amount in the debtors control account and the single amounts in all the individual subsidiary ledger accounts, credit VAT and credit sales.

    When you receive payment for these you Debit the bank, credit the debtors control account and credit the individual amounts in the subsidiary ledger (remember the control account is just the total of the sub ledgers). You would credit any discounts allowed in the Debtors control account and the sub ledgers then debit discounts allowed. YOU DON'T ANALYSE OUT THE VAT!!

    For cash sales you debit bank, credit purchases and credit VAT.

    I hope this has answered your question?

    Someone should probably check this incase I've made another typo! :oops:

    Gem
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    Just a slight error. Cash Sales including VAT
    is Debit Cash/Bank
    Credit Sales (not Purchases)
    Credit VAT

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    That's brilliant. I will test this out tonight when I am at home and check I am understanding it correctly.

    it is really nice coming on here and paople don't mind helping you out!! It saves me stressing out!!

    Thanks to both of you for your help :)
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    I know I think its brill, you don't feel embarrased asking questions coz everyone's in the same boat. Everyone understands different things so what one doesn't know another will and vice versa!

    Good luck to everyone taking the exam on June 13th and remember its all over for Summer!!! :lol:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    lol i should read my messages through before i post them :oops:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    Hmmm.. I almost posted to say that it looked alright to me Gem :?

    Chris
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:CASH BOOK!!

    Lol you're almost as bad as me then!

    I got muddled cos I'd just done a past paper and it was based on purchases rather than sales, was in the wrong mind set!

    Gem

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