The two sides of the cash book
Receipts on the left, payments on the right. See how the cash book is also the Bank account, and what a contra entry is.
Task 1Receipts and payments4 questions
The cash book records all the money a business receives and pays. Receipts go on the left, which is the debit side. Payments go on the right, which is the credit side.
The cash book does two jobs. It is a book of prime entry, where a transaction is first written down. It is also the Bank account in the ledger.
So a receipt written in the cash book is already a debit to Bank. A payment written in it is already a credit to Bank.
Task 2Cash columns, bank columns and contras4 questions