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If my monthly cash books jan to dec do show income and expenses and monthly vat returns submitted are nil returns…do I just take all the cash book income and post it to the trial balance?
“do I just take all the cash book income and post it to the trial balance?”
You make this sound like a double entry! It isn’t, of course … the trial balance is merely a list of the balances within the general ledger, shown in two columns (one for the debit balances and one for the credit balances)
“do I just take all the cash book income and post it to the trial balance?”
Not necessarily – there could be all sorts of other cash receipts (rental income, government grants, cash received from suppliers where we had overpaid them …)
In addition, you appear to have ignored all the receivables balances from the start of the accounting period and the end of the accounting period
If you have monthly vat returns – and clearly you do – presumably you also have sales records from which you will draw the information necessary to prepare those monthly vat returns
So why not use those sales records to arrive at the revenue figure for the accounting year?
“do I just take all the cash book income and post it to the trial balance?”
No! But you will have a balance shown in the cash book and THAT balancing figure will appear in the trial balance
OK?
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