Why is cash in hand a debit?

I got all the answers correct for drafting a trial balance except one - 'cash in hand'. I thought it would be an income - so I put it as a credit. But the answers say Cash in hand should be a debit.
Can anyone tell me why?
Thanks
Can anyone tell me why?
Thanks
0
Comments
Thanks
Think of sales - which are income. When we sell something for cash we credit sales a/c and debit cash a/c.
Thanks again.
B
I too decided that it was going to be one of those things that you just have to accept and hope that it makes sense one day! This thread helped though, good timing for me too!
:001_smile:
If you just accept that it is that way for now, all of a sudden you will click and it will all make sense - promise!
Purchases
Expenses
Assets all equals debit
Revenue
Liabilities
Sales all equals credits
Just keep doing it this way as the other peeps have promised it will suddenly all click one day and make perfect sense.
Think of cash in hand as you would petty cash - it hasnt (as a total figure) been given to the business in relation to any particular activity but the business does own it/have it available for use and it adds value to the business.