Question
A cheque is received from a creditor and paid into the
bank on the same day. How will this transaction be recorded in the cashbook?Solution
When a cheque is received from a creditor and deposited into the bank on the same day, the transaction will be recorded in the bank column of the cashbook. This is because the amount of the cheque will increase the bank balance of the business. The cash column of the cashbook is used to record cash transactions, whereas the bank column is specifically used to record transactions related to the bank account, including deposits and withdrawals.
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