Serious How to interpret cash at bank a/c in trial balance?

[Bonut]

Does money in the debit column means money that exists in the bank account?

How does one explain money in the credit column as money not in existence ?

 

[eatshitndie]

must ask serina. she's very good at this.

 

[Cottonmouth]

Think of debit as adding money in, credit is taking money out.

 

[SNTCK]

looks no problem at all .

 

[Bonut]

Think of debit as adding money in, credit is taking money out.

That is my question. Why "credit" is taking money out ?

 

[SNTCK]

credit bank
debit expenses/cost of sales

 

[batman1]

Cash at bank A/c DR CR
1-1-11 Balance b/d 5342.50
30-1-11 Cheque payment for purchases,expenses,etc 3265.50
30-1-11 Cash/Cheque received from sales 2514.00
30-1-11 Balance c/d 4591.00
7856.50 7856,50
30-1-11 Balance b/d 4591.00

Note:
DR =Cash/Cheque received from customers and deposited into the bank a/c
CR=Cheque payment from bank a/c to suppliers

 

[rocket]

Think of debit as adding money in, credit is taking money out.

Credit is money in.debit is withdrawal of money.

 

[frenchbriefs]

u spend 3.2k a month and ur salary is only 2.5k?

thats a good recipe for insolvency.

 

[frenchbriefs]

Credit is money in.debit is withdrawal of money.

this is a credit card statement maybe,the balance is the outstanding debt,credit is how much he paid,debit is how much he spent again last month.

 

[SNTCK]

Credit is money in.debit is withdrawal of money.

if you learn book keeping, double entry. then you know debit is in, credit is out.
eg cash out is credit. credit bank. then debit, could be cost of sales or expenses.

then later b/f go to B/S ( debit side- left side) , if negative cash flow then go B/s (have to minus out)
then expenses go to Profit and loss account.

 

[SNTCK]

https://www.accountingcoach.com/blog/what-is-the-double-entry-system

The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or more). For example, when a company borrows money from its bank, the company's Cash account will increase and its liability account Loans Payable will increase. If a company pays $200 for an advertisement, its Cash account will decrease and its account Advertising Expense will increase.

Double entry also allows for the accounting equation (assets = liabilities + owner's equity) to always be in balance. In our example involving Advertising Expense, the accounting equation remained in balance because expenses cause owner's equity to decrease. In that example, the asset Cash decreased and the owner's capital account within owner's equity also decreased.

A third aspect of double entry is that the amounts entered into the general ledger accounts as debits must be equal to the amounts entered as credits.

 

[SNTCK]

https://www.accountingcoach.com/blog/what-is-the-double-entry-system

The double entry system of accounting or bookkeeping means that every business transaction will involve two accounts (or more). For example, when a company borrows money from its bank, the company's Cash account will increase and its liability account Loans Payable will increase. If a company pays $200 for an advertisement, its Cash account will decrease and its account Advertising Expense will increase.

Double entry also allows for the accounting equation (assets = liabilities + owner's equity) to always be in balance. In our example involving Advertising Expense, the accounting equation remained in balance because expenses cause owner's equity to decrease. In that example, the asset Cash decreased and the owner's capital account within owner's equity also decreased.

A third aspect of double entry is that the amounts entered into the general ledger accounts as debits must be equal to the amounts entered as credits.

 

[SNTCK]

Bank statement and company bank account is Two different things.

 

[frenchbriefs]

it says the Bank a/c has an opening debit statement of $5342.Lets ponder what that means for a second.ok nvm i give up.

 

[SNTCK]

it says the Bank a/c has an opening debit statement of $5342.Lets ponder what that means for a second.ok nvm i give up.

U anyhow say. This is ledger account la

 

[Bonut]

this is a credit card statement maybe,the balance is the outstanding debt,credit is how much he paid,debit is how much he spent again last month.

Good try. This is a trial balance example taken from wikipedia.

 

[Bonut]

Cash at bank A/c DR CR
1-1-11 Balance b/d 5342.50
30-1-11 Cheque payment for purchases,expenses,etc 3265.50
30-1-11 Cash/Cheque received from sales 2514.00
30-1-11 Balance c/d 4591.00
7856.50 7856,50
30-1-11 Balance b/d 4591.00

Note:
DR =Cash/Cheque received from customers and deposited into the bank a/c
CR=Cheque payment from bank a/c to suppliers

You pulled out everything from the table and reproduced them line by line ?

 

[Bonut]

Credit is money in.debit is withdrawal of money.

You have the same perception and misconception like I do. Waiting for some custom made clarifications.

 

[rocket]

You have the same perception and misconception like I do. Waiting for some custom made clarifications.

Is it ?
I din know.this is accounting.