Question about Trial balance and Double entry (plzzz help)

[Alina]

Hi guys, I've just started a bookkeeping course and can't get one thing there:
If I need to do a Trial balance I have to enter all accounts ,double entries to the Ledgers , then balance them, then enter these balances to the Trial Balance(CR and DR side) But one thing...If it is written: 'Cash Sales - XX£' , I DR Cash account ( or Sales account) ,but do not CR anything...no double entry here and Trial balance will be incorrect. Should I have also account representing customers who pay in a cash register?

 

[Alpha]

If it is a cash sale you

Dr Cash (or Petty Cash)
Cr Sales

simple Eh

 

[Alina]

oh...haha..it is=))
I just thought that money should be CR from those who paid, and that were customers, that confused me+)
tnxx hope that's right=)

 

[Alpha]

tnxx hope that's right=)

Beats me whether it is right or not.

how on earth would I know :wink:

 

[KM-Tiger]

.............
I just thought that money should be CR from those who paid.........

No, as I understand it Double Entry works the other way round to what a normal person would think, so:-

Debit (DR) is money in

Credit (CR) is money out

What confuses most people is that banks give you a statement that then appears to be the other way round. But that's because they are saying it from their point of view, typical of banks really................

 

[dcaccounting]

Yeah, most people think of double entry as their "bank account" a bank is also a business...

When you put money into your account it will appear as a "credit" because you are the banks "Creditor" and when you withdraw money is shows as a "debit" becuase the bank has repaid its debt to you.

Regards

Dean

 

[Alina]

Yeah, I understand this, the thing that I dont understan is that Double entry should show 2 accounts - account from which money was taken (CR) and on which it was transfered(DR) , but if it is cash in a till , or Cash sales, and if I CR Sales, DR Cash(like it was suggested above) it's like taking money from your account and putting again on yours ..confusing+))) I though before that there should be some kind of Customers Who Pay In Cash Account , - they give money (CR), cash register is full(DR)=)))

And you know one more thing I wanted to ask ...do many businesses have such lendgers where they keep records of ALL accounts? you know if I had my own business, I would've had only Nominal Ledger and maybe Purchases, Sales (if some ppl buy on credit)
In this case(my assignment) I need to have all the accounts...accounts of the customers (by name) to show that money was taken (CR) from them and given to me (Bank Accout.DR) , perchases returns (as separate account), loan (as separate) etc. only to check balance if everything is correct in a Trial Balance.... what the heck is that for? Too many ledgers and accounts can actually bring more trouble , maybe Im mistaken

 

[BMS]

It may be worth your while investigating accounts software !

 

[Joyous]

And you know one more thing I wanted to ask ...do many businesses have such lendgers where they keep records of ALL accounts? you know if I had my own business, I would've had only Nominal Ledger and maybe Purchases, Sales (if some ppl buy on credit)

The books that a business keeps depend very much on the type of trade it's running. Your typical corner shop or even a major retailer such as Tesco's isn't likely to have much of a sales ledger as they don't sell on credit.

Some business can just get by on a cash book and maybe a couple of supplier accounts, some businesses will need the full works.

Regards

Joy

 

[Alina]

true=)..thanks everyone for replying, btw!

When you're working as a bookkeeper how does it usualy go like? you're given paper during the day with notes that you need to sort out? (like something needs to be entered in the ledger, invoices done, statements, pay slips etc) I mean I've just started this course, really enjoy it ,but it's all in books and I want to know what it's like in a 'real life'

 

[NicolaCassidy]

Alina,

I have my own book-keeping business so if you want to pm me, feel free and i'll tell you how i work etc - if you want to tell me specific questions you have.

Nicola