Help Cash Book or Journal or both?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi currently studying foundation level via distance learning and need help with journals.<BR><BR>Does the non-credit purchase of fixed assets only use journals as prime entry or do they go in the cash book as well?<BR><BR>Hope the question makes sense.<BR><BR>Thanks<BR>

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help Cash Book or Journal or both?

    when you say a non-credit purchase what do you actullly mean.....cash!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help Cash Book or Journal or both?

    Hi <BR><BR>Sorry, what I meant was buying a fixed asset by cheque or cash say when starting a business.<BR><BR>As far as I know journals are the prime-entry for non-regular transactions like one-off purchases of fixed assets, but what if these fixed assets are bought by cheque (or cash) do they also go through the cash book? (another form of prime-entry).<BR><BR>Hope this makes sense.<BR><BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help Cash Book or Journal or both?

    Hi <BR><BR>You would post the capital into the cash book as a debit, to show that the money was put into the company, in the main ledger you would show it as a credit to capital, if you show your bank account through the main ledger then this would be debited, otherwise, just use your cash book as the opposite double entry.<BR><BR>Tracy
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Help Cash Book or Journal or both?

    Cheers Tracy<BR><BR>Having the forum to ask the odd question (or share stress!) while studying at home is a great help.<BR><BR>Thanks again.

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