# Balance Cash Book

by Lisa Alexander
(Castries )

Balance Cash Book

Patricia records her bank and cash transactions in a column cash book. On 1st of a certain year, she had a cash balance of 110 and a bank overdraft of 745. The following transactions took place during June of the same year:

8th: Received a cheque from Alan in full settlement of a debt of 100. Alan deducted a 4% settlement discount.
15th: Withdrew 150 cash for personal use.
16th: Paid William 180 by cheque, in full settlement of a debt of 190.
Made cash sales of 500, of which 400 was paid straight into the bank and 100 into the cash account.
Paid salaries and wages of 1000 by cheque.

Write up the cashbook of Patricia for the month of June of that year. Balance the cash book and bring down the balance at 1st of July of the same year.

### Comments for Balance Cash Book

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 Jul 26, 2023 Rating Cash Book Transactions by: BB To answer the question, we need to update Patricia's cash book for the transactions that occurred in June of the specified year: Cash Book for June [Year]: | Date | Particulars | Cash | Bank | | 1 | Balance b/f | 110 | 745 | | 8 | Alan (Debt) | 96 | - | | 15 | Withdrawal | - | 150 | | 16 | William Debt| 10 | 170 | | 16 | Cash Sales | 100 | 400 | | 16 | Bank Sales | - | 100 | | 30 | Salaries | - | 1000 | Balances: Cash: 100 Bank: 170 At the end of June [Year], Patricia's cash balance is 100, and the bank balance is 170. These balances will be brought forward to the next month (July [Year]) as the opening balances.

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## Balancing Daily Receipts

by C. Jones
(Spokane, WA)

Balancing Daily Receipts

I recently had a random Dept. of Revenue Excise Tax audit for my business. It all turned out ok but now I'm wondering if my daily receipts should balance out with the deposits. Some deposits are made after the end of the month and show up on the following month. Help! :)

### Comments for Balancing Daily Receipts

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 Jul 26, 2023 Rating Accounting For Daily Receipts by: BB In a typical accounting practice, daily receipts should be accurately recorded and reconciled with the corresponding deposits made to your bank account. It's essential to ensure that all transactions are properly accounted for in the correct accounting period. If some deposits are made after the end of the month, they should still be recorded in the appropriate month when the income was earned, not when the deposit was made. This process is crucial for maintaining accurate financial records and complying with tax regulations. Regular reconciliation between your daily receipts and deposits can help identify any discrepancies and ensure the accuracy of your financial statements.

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## Balancing FICA

Balancing FICA

Working as a church bookkeeper, When I enter payroll checks into QuickBooks, I enter the social security and Medicare separately with the following account titles and explanations. Payroll Liabilities with a negative amount as Employee portion; Tax: Soc Sec or Medi with a positive amount and explained as church tax liability; then under Payroll Liabilities I use a negative amount with the explanation of church portion. This seems to create the report I want for the church board and the check balances. Is this, okay?

My problem seems to arise when I want to balance that against the payments made to the government for the withholding taxes. Should I be making the payments to the IRS or to the US Treasury and do I post it as a positive or negative number to Payroll Liabilities (SS & Med) or tax SS & Med? Will these numbers show up on the report? The help resource on my bookkeeping program seems to indicate it would not.

### Comments for Balancing FICA

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 Jul 26, 2023 Rating Church Payroll Bookkeeping by: BB As a church bookkeeper, your approach to entering payroll checks in QuickBooks seems reasonable for tracking payroll liabilities and tax withholdings separately. However, it's essential to ensure that the accounting treatment is accurate and aligns with the specific tax regulations. Regarding the payments made to the government for withholding taxes, it's crucial to make these payments to the appropriate authority, which is the IRS (Internal Revenue Service) in the United States. When recording these payments in QuickBooks, you should post them as negative amounts under the respective Payroll Liabilities accounts, such as Payroll Liabilities (SS & Med) or Tax: SS & Med. The negative amount reflects that you are reducing the liability owed to the government. This approach will help reconcile the amounts you owe to the IRS with the payroll liabilities you have recorded in QuickBooks. By posting these payments correctly, the corresponding amounts should show up on your reports, providing an accurate view of your payroll tax liabilities. However, it's always a good idea to double-check with a professional accountant or tax advisor to ensure compliance with specific tax laws and regulations, as they can vary based on your location and other factors.

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## Balancing Year End Bookkeeping

Balancing

I do not know what part of the balance sheet reads to what part of the P&L. Also, what should I look for when balancing? I know about bank balances, AR & AP. What else? What should I do at year end?

### Comments for Balancing Year End Bookkeeping

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 Jun 11, 2018 Rating Year End Bookkeeping Balancing by: Stephanie Hello, great question, thank you. The net income on the profit and loss statement should match to the net income shown on the balance sheet (under equity) for the same time period. For a calendar year end this would be 12/31/XX.When balancing (or to tie-out) at year end you are basically making sure that all the account balances showing on the balance sheet match to the balances on your statements. For example: You bank account should be reconciled through 12/31/XX and the amount shown on the balance sheet at 12/31/XX should match to the reconciled bank statement balance at 12/31/XX.The Accounts Receivable balance shown on the balance sheet should match to the Aged Accounts Receivable Report balance showing at 12/31/XX. The Accounts Payable balance shown on the balance sheet should match to the Aged Accounts Payable Report balance showing at 12/31/XX.All asset balances and accumulated depreciation showing on the balance sheet should match to the asset/depreciation schedule of your tax return at 12/31/XX. Along with the depreciation expense showing on the profit and loss statement. All credit cards should be reconciled through the end of the year and the account balances shown on the balance sheet should match to the reconciled credit card statement balances at 12/31/XX. All notes and loans payable on the balance sheet should match to the balances due shown on the statements at 12/31/XX. Any payroll taxes payable on the balance sheet should match to the payroll forms 940, 941, De6 and De7 as applicable. While all payroll wages and employer tax expenses shown on the profit and loss statement should match to the same reports at 12/31/XX. The sales tax payable on the balance sheet should match to 4th quarter sales and use tax form if not paid before 12/31/XX. Thanks again for your great question!

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## Maintaining The Balances

by Diana
(South Africa)

Maintaining The Balances

I have three investment accounts in G-Ledger, all of them are debit accounts. Let's call them Account I, Account II, and Account III. Money is transferred from Account III to Account II, and I can journal this to reduce the balance in Account III and increase the balance in Account II. When the money arrives in my current bank account, it will be credited off Account II, effectively canceling out the balance.

However, there's another account called Long Term Capital Borrowing, which is a credit account. Its balance is supposed to be the same as Account III, but in the opposite direction. While Account III is a debit, Long Term Capital Borrowing is a credit. To maintain the balance, all I would do is journal a credit in Account III and a debit in the other account.

It's this third transaction that has me stumped. This new bookkeeping software, Pastel, is unfamiliar to me, and even though the books at work are fairly simple, I feel like I'm having trouble understanding it.

### Comments for Maintaining The Balances

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 Jul 26, 2023 Rating Journal Entry for Balancing Accounts in Pastel Bookkeeping by: BB In the given scenario, you need to perform a journal entry to maintain the balance between Account III (debit) and Long Term Capital Borrowing (credit). Since these accounts have opposite balances, you can achieve the balance by journaling a credit entry in Account III and a corresponding debit entry in the Long Term Capital Borrowing account. For example, if you want to maintain a balance of \$500 in Account III and Long Term Capital Borrowing, you would create the following journal entry: Account III (debit) - \$500 Long Term Capital Borrowing (credit) - \$500 This transaction ensures that both Account III and Long Term Capital Borrowing have the same amount but opposite balances, maintaining the desired balance between the two accounts. As you continue to use the new bookkeeping software, Pastel, you'll become more familiar with its functionalities and gain confidence in handling various transactions. Remember to double-check your entries and seek assistance if needed to ensure accurate and efficient bookkeeping.

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## Open Balance Equity

by Barbara Stone
(Marshall NC USA)

Open Balance Equity

I have just learned QuickBooks. I know that you put a certain amount in opening balance equity to be distributed to each individual account. After doing so, does the opening balance equity amount ever change on the balance sheet of the individual account?

### Comments for Open Balance Equity

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 Jul 26, 2023 Rating QuickBooks Opening Balance Equity by: BB Once the opening balance equity is distributed to individual accounts, it should not change on the balance sheet of those accounts unless there are specific transactions or adjustments made that affect the opening balances. The purpose of the opening balance equity account is to temporarily hold the balances before they are distributed to the appropriate accounts during the setup process. After the distribution, any changes to the individual account balances will be reflected through regular transactions, such as income, expenses, or other adjustments, but the original opening balance equity amount should remain unchanged.

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