Comments

  1. Avatar of Killian says

    I really appriciate your helps with all of these lecture videos.

    I have a question: at 16:20 I don’t get what he says. After determining cash 15.000, then what? And why is there a balance of 5.000 in Debit at the end?
    Thanks in advance.

    • Avatar of John Moffat says

      This is just an illustration of the account – we are calculating the receivables at the end of the year.
      If total sales were 20,000 then we debit receivables with 20,000. If cash received from credit customers was (say) 15,000, then we credit receivables with 15,000.
      The end result (the balance) is a net debit of 5,000 – the total we are owed at the end of the period.

      • Avatar of Killian says

        Thanks so much. But I am still confused. He adds a balance in credit right after sales, then makes total credit up to 20.000. If debit and credit are both accounted for 20.000 equally, the balance at the end of month should be 0, isn’t it?

      • Avatar of John Moffat says

        There is a debit of 20,000 and a credit of 15,000.
        So a net debit of 5,000, which is what we end up with.

        The figure on the credit side is the missing figure, or the balance – we then carry it forward to the opposite side.

        I think it best if you watch my lecture on double entry to see how we balance of faccounts neatly.

  2. avatar says

    So it means cash book works as a book of prime entry and as a part of double entry system? At the end of the day’s transactions when we want to complete a double entry for Credit purchases, again we use cashbook as part of double entry system right?
    Dr Payable ledger control account
    Cr Cash Book

  3. avatar says

    THOUGH AM STUDENT WHO IS AT THE COLLEGE AND AM ON HOLIDAY, I FIND OPEN TUITION TO BE A BIG HELP AND FEEL LIKE AM IN CLASS WHILE AT HOME. KEEP IT UP. ARE YOU PARTNERS OR INDIVIDUAL?

    MONICA

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