Maintaining the Cash Book Post transactions to the three column cash book Balance a three column cash book Identify the uses of primary records Post from the three column cash book to the main ledger Slide 1

Three column Cash book records all money received by the business both cash and bank It does go a stage further and analyse why the cash was received Receipts are entered into the debit side of the cash book (money in) Payments are entered on the credit side of the cash book (money out) Discount allowed and received are recorded in the memorandum columns Slide 2

3 column Cash book Debit Side DateDetails Discount allowed BankCashSalesSLCAInsuranceVAT July 22ndCash sales Tigger Ltd Insurance rdCash sales thCash sales thCash sales Cats Ltd thCash sales TOTALS Slide 3

Main Ledger Slide 4 DebitSalesCredit £ 22 nd July bal b/d th July Bank Sales ledger Control Debit Credit £ 26 th July bank discount allowed 7.50 MAIN LEDGER £ 22 nd July bal b/d DebitInsuranceCredit £ £ 26 th July bank

Slide 5 DebitvatCredit £ 22 nd July bal b/d Discount allowed Debit Credit £ MAIN LEDGER £ £ 26th July cash book 7.50 DebitTigger LtdCredit £ 22 nd July bal b/d £ 22 nd July bank discount allowed 5.00 SALES LEDGER

Slide 6 DebitCreditCats Ltd £ 22 nd July bal b/d £ 26 nd July bank Discount allowed 2.50

Activity Complete activity Test 1 Record the receipts into the cash book Total the cash book and check it cross casts What would be the double entry for the discount allowed column? Slide 7

3 column cash book (CREDIT SIDE) Slide 8 DateDetails Discount received BankCashPurchase s PLCAWagesVAT July 22nd Cash Purchases Desmond Ltd Bank Wages rdCash purchases thCash purchases thCash purchases Elmson Ltd TOTALS

Activity What would be the entries in the main and purchases ledger? Using the debit and credit columns and assuming that the opening balances were Cash £100 Bank £2500 What would be the balances in each of these accounts? Slide 9

Primary Records for the cash book Research task In Pairs find out what the following primary records are and prepare a handout to be shared with the rest of the group. Use Pictures and examples to enhance your work Till Receipts Paying in Slip Cheque and cheque stub Automated transfer Bank Giro Credit Bacs Chaps Standing Order Schedule Direct Debit Bank Statement Slide 10