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The books of prime entry, discounts and sales tax

Example 4: Solution (cont.)

As well as entering the amount of each payment and receipt in the total
columns, the amount would also be entered in one or other of the analysis
columns. This means that when the book is totalled, at regular intervals, it will
be immediately apparent how much cash has been received from credit
customers, how much paid to credit suppliers, how much paid in wages and so
on.

The double entry required for the total from the cash receipts book to the
nominal ledger would be as follows:
Debit

Debit

Credit
The double entry required for the total from the cash payments book to the
nominal ledger would be as follows:

Debit

Debit
Debit

Credit
Credit

As well as the double entry to the nominal ledger above, the transactions
would also be reflected in the memorandum accounts.

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