Bite-Size Learning 2: Recording Cash Transactions

When you record a cash transaction, all you need to do is to answer 2 simple questions.

What would be the cash impact from the transactions (Cash up or Cash down)?

For example, If cash level goes up, Dr Cash in hand or Cash at bank

You followed by crediting the reason causing the cash movement?

For example, if the cash level goes up due to sales activities, Cr Sales Revenue.

It is that simple

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