Cashbook

The Cash Book is used to record the receipt and payment of money by the business in the form of cash, or through the business bank account. It contains the cash and bank accounts.

Columns are set up for:

-The Date

-Details

Entries are made for the other account to enter to complete double entry

-Folio

The reference is entered for the book and page number for the other account to complete double entry

-Discount Allowed

This is an incentive for speedy settlement of credit sales. All Discount Allowed merely listed here.

-Discount Received

This is an incentive for speedy settlement of credit Purchases. All Discount Received merely listed here.

-Cash and Bank Receipts

Types of Transactions Recorded:

Cash product sales / fees

Cash collected on customer accounts

Any other receipt (source) of cash

-Cash and Bank Payments

Types of Transactions Recorded:

Cash paid for expenses

Cash payments to our suppliers on account or cash purchases

Cash purchase of supplies

Any other cash payment

The following Cash Book transactions are entered below:

2009

May 1   Balances brought forward for Cash $100 and Bank $2 000

May 2   Cash sales $250. paid directly into the bank

May 3   Bought motor van for cash $200

May 5  Cash sales $ 250

May  8  Paid rent by cheque $150

May 10 Paid wages by cheque $120

May 18 Received cheque of $90 from debtor B.Butler, Discount Allowed $10

May 19 Paid cheque $200 to creditor C. Bare. Discount Received $20

May 22 Received cheque of $50 from debtor S.Combs, Discount Allowed $5

May 24 Paid cheque $30 to creditor V. Bryan, Discount allowed $30

May 24 Withdrew cash from the bank $20 for personal use

May 28 Cash of $20 was deposited to the bank account

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