Posting of the Cash Book Video Lecture | SSC CGL Tier 2 - Study Material, Online Tests, Previous Year

now how is posting done like I said this
is the cash account so this is the
balance of cash this is the bank account
this is the balance of back in a trial
balance you have cash balance 5500 bank
balance 5005 thousand discount account
itself is only total so we know we have
a total of 200 discount allowed discount
allowed the disc on column on the debit
side represents discount allowed and the
discount column on the credit side
represents discount received and that
total is hundred now while we have the
cash account here while we have the bank
account here we do not have we need to
post these the effect of all this to the
capital account to Shawn's account to
purchases account to Raheem account to
discount allowed and to discount
received how is this done this is from
the debit side of the cash book when we
post we post it to the credit side of
the corresponding account for example
then we come to the cash book we have
here capital so we go to the ledger see
the capital account and capital account
will have a debit and a credit side so
how do you post when we post from the
debit we come to the credit side of the
capital and we write here by is this on
account of cash or bank cash so we write
here by cash 10000 similarly if you take
showers account debit side therefore we
come to the credit side cash account has
been debited therefore shams account
will be credited and what will be right
here this is on account of bank so we
are going to write here by back but by
bank is 2,000
is another effect 200 so we right here
by this count 200 just like we have
posted to the credit of the
corresponding accounts from the debit
side of the cash book similarly when we
go to the credit side of the cash book
and post we will post it to the debit
side of the respective accounts
respective accounts to take one example
we can take Raheem's account since it
has a discount to Raheem's account if we
take this Rahim's account cash book
credit side so we come to the debit side
of Rahim's
and we see - is this received on account
of cash or bank cash so - cash what is
the amount amount is 500 to discount
this count received this is another
hundred the total of the discount if you
have a discount allowed sometimes they
have a discount allowed a discount you
see others have one discount account
discount received is posted to the
credit side is count allowed is posted
to the attendance but assuming we have
two accounts here discount allowed is
200 so we see two sundries two sundries
has perth cash book how much 200 this is
the total this is the total similarly if
we make a discount received account we
say by sundries and spur cash book what
is the total here it's only 100 so we've
got a cash account we've got a bank
account because it is called the Lord
account be called a discount receipt
account and the capital account
Rehema con all the accounts which are
here have to be posted from the debit
side we will post to the credit of the
account from the credit side of the cash
book from the credit side of the cash
book we will post to the tenets of the
respective let us just summarize this
effects of posting the balance in the
cash column is nothing but
representative of the cash account so
the balance in the cash column we had
five thousand five hundred that is the
balance of cash account as far as the
bank is concerned the balance in the
bank column is nothing but the balance
of bank account bank account balance is
represented by the bank column in the
cash book by the balance in the bank
column of the cash flow so the cash
account is taken care of bank account is
taken here we also have a discount
allowed and discount received columns
but this is not representative of the
discount account
how is discount posted totalistic and
the total of the discount column on the
debit side represents discount allowed
and therefore it is taken to the debit
of the discount allowed account to
sundries as per cash book taken to the
debit side of discount alone similarly
the total of the discount column on the
credit side how do we post that that's
discount receipt if you open an account
in the ledger discount recei and we take
it to the credit side of the discount
received account by sundries as per cash
book meeting the and finally we post to
the respective ledger accounts how do we
do that
from debit side here from debit side of
cash book when we post we post it to the
credit of accounts post to credit of
respective accounts
so on the debit side if you got as per
the cash book on account of capital you
open the capital account and on the
credit side of capital P right by cash
so much this is one and for the debit
side what do we do
I'm sorry from the credit side what do
we do from the credit side of cash book
how do we post the post correspondingly
we post to the debit of the account in
addition to this one another kind of
entry was a transaction which involves
both cash and bank if it involves both
cash and bank then it is a contra entry
because it will be entered in both sides
on both sides of the same account the
moment we see contra which is
represented by a C in the ledger folio
color what would it indicate it indicate
that the same amount is also reflected
on the other side so when cash is
withdrawn from bank on the debit side in
the cash column would have gone up on
account of to bank and on the credit
side we would say by cash and enter the
amount in the bank since money was
withdrawn from the back also since the
cash book is a book of original entry
these transactions are supported with a
narration supported cash book is
supported with the narration two
transactions each entry is supported
with a