Posting To The Ledger From The Cash Book

Posting To The Ledger From The Cash Book

The narration against each of these postings will be if the payment was in the cash column of the cash book or if it was in the bank column. Now you have to post any discounts from the discounts column. Remember, although the cash book is part of the ledger, this column does not have such status; it is a single entry element sitting inside a ledger division, while not exactly being part of it. So the postings from the discounts column must be twofold, just as for any other prime entry source.

Posting from the petty cash book

The petty cash book may, or may not, be treated as part of the double entry system. If it is, as with the cash book, its entries will themselves already contain one side of the ledger posting; you have only to make the other. However, this one aspect of the dual entry is itself split into various postings to nominal ledger accounts and this is why analysis columns have been used. Their individual totals, together with the VAT column total, provide the figures to be posted to the various accounts denoted by their column headings. The net invoice total column is not posted anywhere.