Recording cash receipts and cash payments Flashcards
In a cash receipts and a cash payments day book, which two columns are part of the double entry system already?
The bank and cash columns.
What details must be included on a cash receipts day book?
Any balances brought down, Customer accounts, Bank £ column, Cash £ column, Cash sales £ column, VAT £ column, SLCA £ column.
What details must be included on a discounts allowed day book?
Customer account, Total £, VAT £, Net £.
What would the postings be to the subsidiary ledgers for a cash receipts day book and a discounts allowed day book?
Cr Customer account (gross amount in £).
What would the postings be to the general ledger for a cash receipts day book and a discounts allowed day book?
Dr Discounts allowed, Dr VAT, Cr SLCA (for the discounts allowed day book), Cr Sales, Cr VAT, Cr SLCA (for the cash receipts day book).
What details must be included on a cash payments day book?
Supplier accounts, Bank £, Cash £, Cash purchases £, VAT £, PLCA £.
What details must be included on a discounts received day book?
Supplier account, Total £, VAT £, Net £.
What would the postings be to the subsidiary ledgers for a cash payments day book and a discounts received day book?
Dr Supplier account (gross amount in £).
What would the postings be to the general ledger for a cash payments day book and a discounts received day book?
Dr PLCA (for the cash payments day book), Dr Purchases, Dr VAT, Dr PLCA (for the discounts received day book), Cr Discounts received, Cr VAT.
In what other format can a cash book appear in?
The cash book can appear in a ledger account format.
If only a debit side of the cash book is shown, would the transactions within the general ledger be a debit or a credit?
They would be credit transactions.
If only a credit side of the cash book is shown, would the transactions within the general ledger be a debit or a credit?
They would be debit transactions.
