Which transaction is normally entered on the debit side of the cash book?
Correct answer: B. Cash received from a customer
- A. Payment to a supplier by cheque
- B. Cash received from a customer
- C. Discount allowed to a debtor
- D. Bank charges deducted by the bank
Explanation
Receipts of cash or bank funds are entered on the debit side of the cash book. Payments, discounts allowed and bank charges are recorded on its credit side or in the relevant columns.
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About Double Entry and Books of Prime Entry
Double entry records every transaction with equal debit and credit entries, based on the accounting equation and the classification of assets, liabilities, capital, income and expenses. Books of prime entry include the sales, purchases, returns and cash books, journal, and source documents used before transactions are posted to ledger accounts.
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