Are cash book receipts, which increase the cash in the bank, debits or credits?

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Prepare for the AAT Level 2 Bookkeeping Test with flashcards and multiple choice questions. Each question includes hints and explanations to improve your understanding and readiness for the exam.

Multiple Choice

Are cash book receipts, which increase the cash in the bank, debits or credits?

Explanation:
In double-entry bookkeeping, increases in assets are recorded on the debit side, and cash/bank is an asset. Cash book receipts represent increases in the cash held or in the bank balance, so they are recorded as a debit entry. The cash book itself aligns with this: receipts go on the left (debit) side, while payments go on the right (credit) side, which is why cash book receipts are debits.

In double-entry bookkeeping, increases in assets are recorded on the debit side, and cash/bank is an asset. Cash book receipts represent increases in the cash held or in the bank balance, so they are recorded as a debit entry. The cash book itself aligns with this: receipts go on the left (debit) side, while payments go on the right (credit) side, which is why cash book receipts are debits.

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