cash book query

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:24AM in AAT student discussion
relating to a three column cash book.

i have a question saying

"Cash sales paid into bank"

whats involved. Do you just enter the amount into the bank column or first db cash, then cr cash amd db bank?

hope u can help

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book query

    Hi

    Bank column is generally used as BACS and Cheques.

    Cash column is literally as it says.

    On a 3 column cash book - you'd just DR Cash with the amount.

    The cash book coloum is already part of the bank account.

    Hope this helps
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book query

    ok so if i have £450 cash sales paid in bank. thats where i am confused. do i put the sale into the cash column or bank column?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book query

    When someone says cash sales, we were taught that it doesn't necessarily mean it's a payment made in cash, rather that the payment has been made immediately..

    So - Cash sales paid into bank equals, in my eyes, an immediate sale and the proceeds are put into the bank.

    So, DE would be DR Bank and CR Sales (not been to college lately so someone please confirm this is correct)

    J
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:cash book query

    The way I look at it is that if it will appear on the bank statement then it goes in the bank column. Therefore sales that are paid into the bank go into the bank column.

    You will use the bank column to check off when you do a bank reconciliation so if you keep that in the back of your mind you will always get it in the right place.

    Annette

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