Cash Receipts Book Query

Hi,

I am currently getting me records in order for my year end accounts and I have a query. In my Cash Receipts book I record the payments I receive from my clients. In this book I have a column where I reference the invoice that the payment was related to.

My question is in what book do I record the lodging of my client's cheque into my business account. Or do I need to to record this transaction?

Thank you.

You should have a book which records bank lodgements.

You could however use the same book as the cash receipts one if you can trace each lodgement back to an invoice, or bunch of invoices. Just reference each cash receipt to a lodgement reference number (even a date will do) on the bank statement

There are 4 day books (ledgers). Sales, purchases, bank and nominal. the sales ledger records all your invoices and associated credit notes. You calculate your sales and VAT output figure from it. The purchase book is for purchases and VAT. Bank for all bank transactions (receipts and payments and for reconciling it). the nominal is for any adjustments accruals/prepayments, bad debts provision, etc.

Get a free package from TAS/SAGE - the day of writing these things up is gone esp. with free software (unless of course you only have a few transactions and you have no access to a computer).

Thank you for your replies everyone !