Cash book challenge!

 Lets talk some more on the movement of money in the cash book? 

 

Dr- Receipts 

Cr- Payments 

 

When money is received the bank balance increases and when money is paid out, the bank balance reduces. J

 

Simple hey!!! 

 

Lets see how you get on with this simple scenario: 

 

• Where there is an opening credit bank balance of £12,030 and the totals recorded in the cash book for the year ended 30 September 20X4 were: 

 

Receipts	£121,490
Payments	£106,950

 

Assuming there were no year-end adjustments, what will be the opening balance in the cash book as at 1 October 20X4?  

 

£_________ debit / credit 

 

 

I’m sure you would have got this correct and known that it will be…….. 

 

 

£2,510 debit since the cash book balance will still have some money left in it, so it will have a debit balance.