How to balance the cash book
Total both sides, find the difference and carry it down. Learn what a debit balance and a credit balance mean.
Task 1Finding the balance4 questions
- Add up each side
- Take the smaller total from the larger. The difference is the balance
- Write the balance on the smaller side as balance c/d (carried down), so that both sides add up to the same total
- Start the next month with the same figure on the opposite side, as balance b/d (brought down)
| Receipts | Bank in | Payments | Bank out |
|---|---|---|---|
| Balance b/d | 2,150.00 | Brook Timber | 750.00 |
| Dene Hotel | 900.00 | Wages | 1,280.00 |
| Oakfield School | 1,440.00 | Glue and sandpaper | 96.00 |
| Cash sale | 360.00 |
Task 2Carrying the balance down2 questions
Task 3When the bank is overdrawn4 questions