Chapter 7: The Cash Book

• Cash Book


  is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.
• Cash book has what side by side on both debit and credit sides?

  Cash and Bank
• Trade discount 


  are discount offered by suppliers to businesses for buying in bulk.
• Cash discount


  are given to encourage payment on time.
• There are 2 types of cash discounts, what are they?

  Discount allowed

  Discount received
• Discount allowed


  is discount given to trade receivables (credit customers) when they pay their accounts early.
• Discount received 


  is discount received by a business from its suppliers when they pay their accounts quickly.