Flashcards in Chapter 8: Cash Book Deck (9)
How does the cash book record the money transactions of the business?
In the form of Bank Receipts & Payments
What is recorded on the Debit Side?
Receipts are recorded on the Debit side.
What is recorded on the Credit side?
Payments are recorded on the Credit side.
What is the common form for a cash book?
3 column cash book
3. Settlement Discount
What may a cash book combine the roles of?
1. Book of prime entry for bank receipts & payments
2. Double entry account for bank.
When the cash book is used only as a book of prime entry, what can be used too complete double-entry book keeping?
A bank control account is used in General Ledger to complete double entry book keeping.
What is the total of the discount allowed column, transferred to the double-entry system as?
- Debit Discount Allowed Account
- Credit Sales Ledger Control Account.
What is the total of the discount received column, transferred to the double-entry system as?
- Debit purchases ledger control account
- Credit discount received account.