Cash trading is one the most used method in shops and discount centers. to keep a cash book updated and write a cash book in true format, you need details of cash flow.
When Cash receives from customer, it will be added to cash account with amount of it in Debit column
When Cash be paid to Vendors, it will be added to cash account with amount of it in Credit column
Under view of accounting concepts, when you receive cash, cash will be debit and capital will be credit and vise versa.
if you want to have automated cash book from your invoices, so you need to use an accounting software but if you are using paper system, so that you should be careful to do not make a mistake in writing voucher in right place in ledger book.
Trackbacks and pingbacks
No trackback or pingback available for this article.
- Cash Book Entries 2,606 views
- Types of Ledger Accounts 710 views
- Cash Book Format 599 views
- iGreen Accounting Software, Free for Small Business 336 views
- Nature of Cost Accounting 330 views
- Amortization Journal Entry 328 views
- Roles of Cost Accounting in Selling Prices 236 views
- Basic Rules of Double Entry System 231 views
- Mobile Shops in Dubai 182 views
- Recording Goodwill entry in the Accounting journals 180 views