I take it that this is a question from a study text.
1. Yes
2. Yes. Unless you want to record cheques in a seperate column (may make reconcilliations easier).
well done, you got it right but just needed a bit of confirmation.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
thanks Shaun, thanks Joanne- so if payment is made immediately ( doesn't matter if by banking card or by cheque or by credit card ) it is always cash sale and should be recorded in cash sale column in cashbook. Am I right?
I'd be interested in your opinion of cheques. I always record these in the cash account then do a transfer to bank when paid in. BACS and faster payments I record direct to the bank. I did read (yonks ago) that it was ok to record cheques straight to the bank, but I've never been comfortable with doing that.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi John
From Rafals point of view, he is learning about manual bookkeeping and using the cash book and the difference between what are considered cash and what are considered credit entries.
Just thought I should add that so save confusion.
Anyway, in real life, John, it's whatever you are most comfortable with. I tend to post cheques direct to the bank for most customers as it's pretty rare they get them and the paying just have cheques on them, so it's just like process a back as far as I'm concerned. Yes occasionally cheques may bounce, but I would deal with that as it occurs.
But, I do also have a vehicle dealership which receives payments in cash as well as cheques and often the two are both paid in together. So I process it into the cash account- as cash is received, also then the cheques individually, then when they are eventually paid into the bank, I transfer from cash to bank as per the paying in slip.
Horses for courses.
HTH
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi John
From Rafals point of view, he is learning about manual bookkeeping and using the cash book and the difference between what are considered cash and what are considered credit entries.
Just thought I should add that so save confusion.
Anyway, in real life, John, it's whatever you are most comfortable with. I tend to post cheques direct to the bank for most customers as it's pretty rare they get them and the paying just have cheques on them, so it's just like process a back as far as I'm concerned. Yes occasionally cheques may bounce, but I would deal with that as it occurs.
But, I do also have a vehicle dealership which receives payments in cash as well as cheques and often the two are both paid in together. So I process it into the cash account- as cash is received, also then the cheques individually, then when they are eventually paid into the bank, I transfer from cash to bank as per the paying in slip. For that one I also have a separate account for payments received from their customer via cards and transfer to Bank when the card machine provider coughs up the money!
Horses for courses.
HTH
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
But, I do also have a vehicle dealership which receives payments in cash as well as cheques and often the two are both paid in together. So I process it into the cash account
That's similar to my situation. Client gets paid for jobs, either cash or cheque, which I record in the cash account. Then when he pays in to the bank in I do a transfer from cash to bank.
I did understand Rafal's situation was different but it just popped into my head as I was reading. Hope I didn't confuse the poor guy.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
