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Bank payments

 

 

1. Post payments from cheque stubs following the example below. Arrange purchase invoices not already filed in date order and write your cheque reference on each invoice.

2.   Use your last set of accounts to guide you when selecting categories for analysing expenses.  These categories should be relevant for making business decisions.

 

Note on VAT

            Gross includes VAT. Net is before VAT is added on. If your business is not registered for VAT or there is no VAT due on the sale or expense, then VAT is ignored and net will be the same amount as gross.

 

2. Post direct debits from your bank account statements in the same format. Use the bank statement page number as a reference.
3. Add cash drawn in date order, and post a debit to a balance sheet cash control account.
4. Your software will post an automated batch total credit to the bank control account, net debits to the individual expense accounts and a Vat batch total debit to the Vat control account.

 

 

 

Cheque payments
Date	Payee	Cheque number/ bank statement page	Gross         £	VAT         £	Suppliers gross (VAT in supplier list)   £	Net tools       £	Wages (no VAT)     £

 

 

 

 

 

 

 

Spot checks

 

1.         See the bank reconciliation menu tag at the bottom of the page. ank reconciliation

 

 

Cash payments

 

 

1. Post cash payments in a journal batch from a summary following the example below. Debit expenses and credit Arrange invoices in date order and write your own reference on each invoice such as ‘CP1, CP2’ etc.
2. The cash drawn would have been posted from the bank payments summary, and the amount of the cash left over is what should appear in your cash control account at the end of the year.  If no cash is left over, then the cash control balance should be zero.

 

 

 

Cash payments
Date	Payee & reference	Cash drawn	Gross       £	VAT       £	Net cleaning     £	Net cash tools   £	Train & taxi     £

 

 

 

Spot checks

 

1. Agree the cash control account to the physical count of cash in hand.
2. Agree VAT batch total to VAT control account debit.

 

 

 

Receipts

 

 

1.         Post receipts from paying in books or bank statements following the example below.

 

 

Receipts
Date	Who from	Receipt number	Gross     £	From VAT office £	From customers   £

 

 

 

2. Receipts from the VAT authority should be recorded in the VAT column.  If VAT was included in the sales list, ignore VAT for that receipt in this summary.

 

 

Spot checks

 

1. Agree the total receipts to the batch total in the bank control account in the balance sheet section of the trial balance.
2. Agree total VAT to the batch total in the VAT control account in the balance sheet section of the trial balance.

 

 

 

Debtors

Purchases on account

Creditors

Payments and receipts

Bank reconciliation

Depreciation

Stock held for sale and work in progress

Expenses paid in advance and in arrears

Long term loans

Trial balance

Close down

Income statement

Balance sheet

Cash Flow Statement