Friday, 26 February 2021

Movement of money in the cash book


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 debit bank balance of £12,030 and the totals recorded in the cash book for the year ended 30 April 20X5 were:







Assuming there were no year-end adjustments, what will be the opening balance in the cash book as at 1 May 20X5?


£­­­­­­­­­­­­­­­­­­­­­_________ debit / credit



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



£2,510 credit since the cash book balance does not have money left in it, so it will have a credit balance.

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