Credit Card Payments - Cash Day Book

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am an old git doing the founadtion cause and easily gets confused. How would you enter such a payment in the CDB?. Is the floor limit applicable before accepting such a payment?

Someone please help an old fart!!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Credit Card Payments - Cash Day Book

    I debit the bank and credit my control when the money is actually received from the credit card company.

    In my daily transactions, I debit the control and credit my retail account.

    The individual transactions are irrelevant - just the totals are recorded (after reconciling the tills, obvioulsy!).

    In practice it's all done as one journal at the end of the month. I have a spreadsheet for 'daily figures' and another for my cb income and they are linked to the control.

    Each month the balance on the control is easily reconciled - but as I check the z reads each day, I am the weakest link!

    Helen

    :wink:
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Credit Card Payments - Cash Day Book

    When I've first taken the payment, I post as follows;

    Debit our credit card account (essentially a temporary holding account. I can't debit the bank account yet since we haven't actually received the money at this point)
    Credit the subsidiary customer account.

    Then when the money is received from the bank, generally the next day, I

    Credit the credit card account (thus clearing the entry from the day before)
    Debit the bank account with the proceeds.

    Regards,

    Robert

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