- This topic has 3 replies, 2 voices, and was last updated 3 years ago by
.
- Posts
Hi Mr John,
Could you explain the Direct Credits, please?
I have watched your lectures and I understood what is the direct debit. However, I slightly have doubts about direct credits. I would be happy if you explain it with some examples.
Thank you !!!!
Direct credits are not common in the exam (even though they are in real life) but are where money is sent directly into your bank account.
For example, if a customer pays us money, then instead of posting us a cheque for payment they might send the money directly to our bank account.If we receive a cheque, then we enter into our cash account as soon as we receive it.
If they pay directly into our bank account then we do not know we have received the money until we see the bank statement and so it is only then that we will enter it into our cash account.
- The topic ‘bank reconciliation’ is closed to new replies.