Double Entry Book Keeping

Double Entry Book Keeping

Why keep accounts?

Its important that a business keeps an accurate and up-to-date record of all its business transactions.

The analysed cash book

Cash transitions are a specific type of financial transaction where cash is used to settle a transaction. Used to record receipts of money coming into the business and payments going out of a business.

Cash Book Rule

Debit (Dr) = money received by the business. Credit (cr) = money paid out by the business.

General Ledger :

Used to record all the expenses that are involved in Running a business, eg. rent & electricity. As part of a double entry system of bookkeeping, the information in the ACB must also be posted to (recorded in) the ledgers.