- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
- Posts
Good evening Sir, i was preparing the cash book, ( getting the opening bank balance, with all bank expenses and income, included all cash expenses left out of the bank stamen,
Then i came across DRAWINGS, TRANSFER DEBIT, INWARD CLEARING and didn’t know what to do with these expenses/income. They have no specific detail as to what expense/income the are. how do i reconcile these items.
None of the three items you have listed are either expenses or income. They are payments or receipts of cash, and it is payment or receipts of cash that appear in the cash account.
If , for example, you receive money from a receivable, it is cash received and appears in the cash account, but it is not income – it reduces the amount owing from the receivable.
Do watch the free lectures.
- You must be logged in to reply to this topic.