BACS PAYMENT

[LemonMuffin1]

When a company pays thier invoice by bacs where does that get recorded in the main ledgers ??<BR>Thanks

[ShazAAT]

same as if it was paid by cheque, cash books etc

[Michael56J]

Keep then separate from your cahs & cheque payments so they are easy to identify:<BR><BR>Dr Bank (Value of cheques and cash paid in)<BR>Cr Debtors<BR>Dr Bank (Value of BACS payments)<BR>Cr Debtors<BR><BR>Hope this helps.

[LemonMuffin1]

Still confused !!!!!!!!!!<BR><BR>In the CRB I have a list of cheques and cash received and the total of this amount is the total on the banking slip , but what do you do with the BACS payment does it get recorded in the CRB and then on to the banking slip ?? but if this is the case then I donâ??t get, it you are paying an amount into the bank that is already entered the bank account ( am I just been a bit thick ) <BR><BR>Thanks <BR>

[sarahheward]

Hi Lemon Muffin <BR><BR>I think i know what your trying to get at (i struggle at EVERYTHING myself so i hope i don't make it worse for you)<BR><BR>Right:<BR><BR>With Cheques and Cash received you have to manually pay them into the bank. This is written out on your paying in slip - both cash & cheque value = X<BR><BR>Also when they are received, you need to record them in your Cash Book (as a book of prime entry) and in the Bank Account in the main Ledger. (the cash book is the subsidary ledger, therefore doesn't account for double entry, its just you keeping note of the amount of money coming in at one time) The value X (total cash & cheques on slip into HSBC etc) is a Debit in the bank account (Main Ledger) and the other side of the double entry is a Credit in the Debotors Ac (also Main Ledger) (With a customer/debtor the money they owe is an asset, when they pay what they owe it reduces the asset therefore shown as a Credit in the Debtors/ customer account.<BR><BR>NOW with the BACS received you should have been sent a Remittance Advice slip stating who was paying you, value and blar blar. From this you enter into your Cash Book BACS payments recieved value = Y (this is something completely defferent from the cash & cheques therefore you don't need to include it on the paying in slip!) Not only from the remittance advice slip they sent you, but also from the amount of money they have transfered into your bank account will be showing on the bank statement. You then enter this value Y as a debit again (separate to your other one) in the Bank Ac (money received) and as a Credit in the Debtors Ac (reducing the amount owing to us)<BR><BR>So to cut along story short, don't worry about putting your BACS payment on your bank paying in slip just put it in the cash book as two separte entries.<BR><BR>Sorry if i've made things worse for you<BR><BR>Best of Luck<BR><BR>Sarah<BR>xx