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:

· Where there is an opening debit bank balance of £8,200 and the totals recorded in the cash book for the year ended 30 June 20X3 were: 

Receipts	£29,298
Payments	£26,698

Assuming there were no year-end adjustments, what will be the opening balance in the cash book as at 1 July 20X3?

£­­­­­­­­­­­­­­­­­­­­­_________
debit / credit

I’m sure you would have got this correct and known that it will be……..

£10,800 debit since the cash book balance will still have some money left in it, so it will have a debit balance.