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Accounting (Help!!)

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  • 06-09-2008 3:07pm
    #1
    samapp
    Registered Users Posts: 65 ✭✭


    It says in my accounting book that in cash accounts the closing cash balance, if any, will always be on the credit side.

    I went to my cash book and my total on the debit side is greater than the total on the credit side. So I balance my account and now the final balance b/d is on the debit side. Is this the closing cash? If it is then how come it is not on the credit side. If this will be the opening balance for the next accounting period then how is it on the debit side and it contradicts what my book says?


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    #2
    suckslikeafox
    Registered Users Posts: 553 ✭✭✭suckslikeafox


    samapp wrote: »
    I went to my cash book and my total on the debit side is greater than the total on the credit side. So I balance my account and now the final balance b/d is on the debit side. Is this the closing cash? If it is then how come it is not on the credit side.

    That doesn't make sense. If the debit side is the greater, then the balance should be on the credit side to make them equal. Then you bring down the credit closing balance to the next month as an opening debit balance


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    #3
    samapp
    Registered Users Posts: 65 ✭✭samapp


    suckslikeafox wrote: »
    That doesn't make sense. If the debit side is the greater, then the balance should be on the credit side to make them equal. Then you bring down the credit closing balance to the next month as an opening debit balance

    So you know how you balance first the credit side to make them equal as balance C/D and then put the balance on the debit side balance B/D do I take the closing balance as the one which has Balance C/D


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    #4
    suckslikeafox
    Registered Users Posts: 553 ✭✭✭suckslikeafox


    samapp wrote: »
    So you know how you balance first the credit side to make them equal as balance C/D and then put the balance on the debit side balance B/D do I take the closing balance as the one which has Balance C/D

    Are you looking to use the balance for a trial balance or balance sheet?

    You would use the balance b/d, ie cash as a current asset in the balance sheet and as a debit figure in the trial balance


    Am I making sense? I hate using b/d and c/d, tends to trip up a lot of people (including me!)


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    #5
    samapp
    Registered Users Posts: 65 ✭✭samapp


    suckslikeafox wrote: »
    Are you looking to use the balance for a trial balance or balance sheet?

    You would use the balance b/d, ie cash as a current asset in the balance sheet and as a debit figure in the trial balance


    Am I making sense? I hate using b/d and c/d, tends to trip up a lot of people (including me!)

    I figured out what was confusing me. I took the Balance B/D at the end as the closing cash but it is the opening cash for the next month. The closing cash is the Bal C/D part. Thanks for your help


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