BANKING CHEQUES AND BACS ??

[LemonMuffin1]

When you are completing the paying in slips for all the cheques and cash , what do you do about a bacs payment , i have recorded it like a cheque in the CRB but that will not balance with the paying in slips unless you unclude the bacs payment but that is already in the bank , confused ??

[Michael56J]

The BACS slip is a sort of cheque. It just doesn't come form the cheque book. Think of it as a bank reconciliation exercise. If you saw a direct debit or credit on the bank statement, you'd add the entry onto your bank account ledger. BACS is the same. The money's in the bank, but it isn't recorded in your cash book.<BR><BR>I prefer to make two entries; one for the paying-in slips for cheques and cash, and one for the BACS payments.<BR><BR>So, you get:<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>

[shell73]

Bacs payments are recorded in the CRB but you do not need to put it in the banking slip because you are not banking it<BR><BR>All you are doing in this are accounting for the payment recieved as part of the double entry you would also need to record this in the Subsidery ledger becuase there balance should be nil because they have paid the outstanding balance<BR><BR>Hope this helps you

[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<BR>

[Tracey1987]

Heya, <BR>I know wot ur sayin, i work in accounts and i deal with this sort of thing regularly. The way to control and record what is being paid into and out of the bank is by keepin a cash book. Record all your reciepts down one side i.e payin in slips, bacs, direct debits etc that are bein paid in on one saide and your payments on the otherside, ie cheques. This way come the end of the month you can reconcile it with bank to make sure it balances. I's also a good idea as u get a written record of exactly what and when things were paid into and out of your bank account.<BR>If u dont get any of that just let me no!<BR>Good luck with it!<BR>Tracey x.