Chapter 8: Cash Book Flashcards Preview

AAT (L2): FINAL Chapter Summary > Chapter 8: Cash Book > Flashcards

Flashcards in Chapter 8: Cash Book Deck (9)
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1

How does the cash book record the money transactions of the business?

In the form of Bank Receipts & Payments

2

What is recorded on the Debit Side?

Receipts are recorded on the Debit side.

3

What is recorded on the Credit side?

Payments are recorded on the Credit side.

4

What is the common form for a cash book?

3 column cash book

1. Bank
2. VAT
3. Settlement Discount

5

What may a cash book combine the roles of?

1. Book of prime entry for bank receipts & payments

2. Double entry account for bank.

6

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.

7

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.

8

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.

9

What is the total of the VAT columns in the cash book, transferred to the double-entry system as?

DEBIT VAT Account:
-Total of the cash book CREDIT side VAT Column

CREDIT VAT Account:
-Total of the cash book DEBIT side VAT Column