AAT 2 questions

Hello, Id just apperciate general help here.

There is only one big problem for me atm. I think there has been a contradiction in the course a couple of times regarding the meaning of the term cash, or cash purchase, or cash sales; as their colums would be defined in the cash book.

I have read that it indicates a cash payment/purchase, have also read it normally means there is a physical transaction, but that it also means that it is immediately transacted.

I think the fact that it is immediate is the most important point, or rather the defining point. In fact I think my exam asked this as a true or false question.

If I get another true/false question asking if the cash sale column of a cash book relates to physical money, answering false will be correct then?

Thanks.

Reply 1

aatwizard

It might help to remeber that there are 2 types of transactions - cash and credit (Trade Receivables/Payables) which means that all the credit card transactions are classified as cash as well. Your assumption is correct. Hope this helps 😊.

Reply 2

moomin valley

Thankyou. However I am stumped by this part of the book still regarding the cash receipt book:

"A cash receipt
would be recorded in the cash column whereas a cheque or other
form of bank receipt would be recorded in the bank column"

But a faster payment would be immediate, and a CHAPS is same day... faster counts as cash, and CHAPS would go under the bank column?