{"id":128,"date":"2020-10-13T10:12:00","date_gmt":"2020-10-13T09:12:00","guid":{"rendered":"https:\/\/www.thetrainingplace.org\/blog\/2020\/10\/13\/do-you-understand-the-movement-of-money-in-the-cash-book\/"},"modified":"2024-11-22T14:01:27","modified_gmt":"2024-11-22T14:01:27","slug":"do-you-understand-the-movement-of-money-in-the-cash-book","status":"publish","type":"post","link":"https:\/\/www.thetrainingplace.org\/blog\/2020\/10\/do-you-understand-the-movement-of-money-in-the-cash-book\/","title":{"rendered":"Do you understand the movement of money in the cash book?"},"content":{"rendered":"<p><b><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Do you understand the movement of money in the cash book?<\/span><\/b><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Dr- Receipts<\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Cr- Payments<\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">When money is received the bank balance increases and when money is paid out, the bank balance reduces.<\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Simple hey!!!<\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Lets see how you get on with this simple scenario:<\/span><\/p>\n<p><!-- [if !supportLists]--><span style=\"font-family: Symbol; font-size: 12.0pt; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;\"><span style=\"mso-list: Ignore;\">\u00b7 <span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">W<\/span><\/span><\/span><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">here there is an opening debit bank balance of \u00a38,200 and the totals recorded in the cash book for the year ended 30 June 20X3 were:<\/span><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">\u00a0<\/span><\/p>\n<table style=\"border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext; mso-padding-alt: 0cm 5.4pt 0cm 5.4pt; mso-yfti-tbllook: 1184;\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr style=\"mso-yfti-firstrow: yes; mso-yfti-irow: 0;\">\n<td style=\"border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 90.45pt;\" valign=\"top\" width=\"121\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Receipts<\/span><\/td>\n<td style=\"border-left: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 3.0cm;\" valign=\"top\" width=\"113\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">\u00a329,298<\/span><\/td>\n<\/tr>\n<tr style=\"mso-yfti-irow: 1; mso-yfti-lastrow: yes;\">\n<td style=\"border-top: none; border: solid windowtext 1.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 90.45pt;\" valign=\"top\" width=\"121\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Payments<\/span><\/td>\n<td style=\"border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; mso-border-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0cm 5.4pt 0cm 5.4pt; width: 3.0cm;\" valign=\"top\" width=\"113\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">\u00a326,698<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">Assuming there were no year-end adjustments, what will be the opening balance in the cash book as at 1 July 20X3? <\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">\u00a3\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad\u00ad_________<br \/>\ndebit \/ credit<\/span><\/p>\n<p><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">I\u2019m sure you would have got this correct and known that it will be\u2026\u2026..<\/span><\/p>\n<p><i style=\"mso-bidi-font-style: normal;\"><u><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\">\u00a310,800 debit<\/span><\/u><\/i><i style=\"mso-bidi-font-style: normal;\"><span style=\"font-family: 'Arial',sans-serif; font-size: 12.0pt;\"> since the cash book balance will still have some money left in it, so it will have a debit balance.<\/span><\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Do you understand the movement of money in the cash book? Dr- Receipts Cr- Payments When money is received the bank balance increases and when money is paid out, the bank balance reduces. Simple hey!!! Lets see how you get on with this simple scenario: \u00b7 Where there is an opening debit bank balance of &#8230; <a class=\"read-more\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2020\/10\/do-you-understand-the-movement-of-money-in-the-cash-book\/\">Read More<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-128","post","type-post","status-publish","format-standard","hentry","category-uncategorised"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Do you understand the movement of money in the cash book? - The Training Place Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.thetrainingplace.org\/blog\/2020\/10\/do-you-understand-the-movement-of-money-in-the-cash-book\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Do you understand the movement of money in the cash book? - The Training Place Blog\" \/>\n<meta property=\"og:description\" content=\"Do you understand the movement of money in the cash book? 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