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    Can someone explain when cheques are taken out are they recorded in a cash book or ledger
    E.G. May 1. He bought shop fittings and fixtures and paid by cheque from Stores Fitments Ltd for £2 000
    20. Paid rent by cheque £200
    21. Paid delivery expenses by cheque £50
    30. Drew cheques for personal expenses £200 and assistant’s wages £320
    Thanks
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    (Original post by Herschel)
    Can someone explain when cheques are taken out are they recorded in a cash book or ledger
    E.G. May 1. He bought shop fittings and fixtures and paid by cheque from Stores Fitments Ltd for £2 000
    20. Paid rent by cheque £200
    21. Paid delivery expenses by cheque £50
    30. Drew cheques for personal expenses £200 and assistant’s wages £320
    Thanks
    You're unlikely to find help for this in the Welcome Lounge - that forum is just for people to introduce themselves rather than asking other questions. I've moved your thread to the Study Help forums, where you should be able to find others who can help you.
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    Yes all bank / cash transactions are recorded in the Cashbook which is a Day Book and then transferred to ledgers at the end of a period.

    Petty cash is an alternative group of cash e.g. till cash of smaller denominations of money rather than other cash amounts in the business.

    From an academic point of view using ledgers or T-accounts as they look like the shape "T" or the cashbook will depend on what is being examined / tested.

    A cashbook is much more detailed than just a simple ledger account for cash and bank.

    May 1. He bought shop fittings and fixtures and paid by cheque from Stores Fitments Ltd for £2 000

    Entries to make:

    DR shop fittings and fixtures 2,000
    CR Bank 2,000

    Debit entry as non-current assets are increasing / a gain and a Credit entry to Bank as assets of bank are decreasing,

    As you may already know, the rules of which side is credited / debited surrounds the Accounting equation i.e. Capital = Assets - Liabilities or rearranged to get Assets = Liabilities + Capital.

    Hope this is useful.
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    Thanks so much, much appreciated!
 
 
 

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