Tag: three columnar cash book

The cash book records the actual cash received. The discount allowed is recorded alongside the cash receipt in the discount column of the cash book.

Cash sales are cash receipts. All cash receipts are recorded in the cash book.

The sale of furniture for cash is a cash receipt. All cash receipts are recorded in the cash book.

Receiving cash from debtors is a cash receipt. All cash receipts are recorded in the cash book.

The recovery of a bad debt is a cash receipt. Therefore, it is recorded in the cash book.

Salary paid in cash is a cash payment. All cash payments are recorded in the cash book.

Paying cash to creditors is a cash payment. All cash payments are recorded in the cash book.

The bank pass book is a copy of the customer's account as maintained by the bank. However, the client is responsible for reconciling their own cash book with the bank statement to ensure accuracy.

A debit advice from the bank indicates a reduction in the bank balance (a payment). To adjust the cash book, this must be recorded on the credit side of the bank column.