[fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”]

Cash Book Example. Frank Wood's Business Accounting I

Cash Book Example. Frank Wood’s Business Accounting I

[/fusion_builder_column][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_title size=”3″ content_align=”left” style_type=”default” sep_color=”” margin_top=”” margin_bottom=”” class=”” id=””]ZIMSEC O Level Principles of Accounts: Books of Original Entry: Cash Book Entries to record Cash Deposited into the Bank[/fusion_title]

  • If a business receives cash from its customers and
  • The cash is later paid into (deposited) into the bank
  • The receipt of the cash is debited to the cash column on the date received, the credit entry being in the customer’s personal account.
  • The Cash account is credited (this is shown by recording the amount in the cash column of the Cash Book on the credit side to show a decrease in the asset of Cash and
  • The Bank account is debited and this is shown by recording a debit in the Bank column of the Cash Book.
  • Consider the following:
  • There was a cash receipt of $300 from M Dube on 6 June 2015 which was followed by the banking on 9 June 2015 of $130 of this transaction would appear in the Cash Book as follows:

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Cash Book
DateDetailsCash ($)BankDateDetailsCash ($)Bank
6 JuneM Dube3009 JuneBank130
9 JuneCash130

  • Where the entire cash amount that was received is deposited into the bank the Cash entry is omitted all together and treated as if a cheque was received.
  • For example instead of only $130 being deposited into the bank in the example above the entire amount is banked.
  • The following entries are made in the Cash Book instead:

    Cash Book    
DateDetailsCash ($)BankDateDetailsCash ($)Bank
9 JuneM Dube300

To access more topics go to the Principles of Accounts Notes.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]


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