Question

Which of the following is recorded on the credit side of bank column of the Cash Book?
Cash sales
Credit Purchases
Dividend Received
Bank Charges

Answer 1

(b) as all others will be increasing cash and increase in cash is debited

Answer 2

Bank charges are recorded on the credit side of the bank column of the cash book

• The credit side or the right-hand side of the cash book is the place where we record all the business cash payments or business-related payments.
• The left side of the cash book represents the debit side where all the cash receipts are posted. All the financial transactions of a business organisation are posted on the cash book either on the debit or the credit side.
• The cash book only records the inflow or outflow of cash.
• Credit transactions like credit purchases or sales are not recorded in the cash book.