Recording client transactions

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6 Terms

1
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cash accounts

8.1© firms have to keep a cash account for dealing with client bank account, they will also want one for business money so will have at least 2 separate cash accounts

2
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entry in cash account for a receipt

DR entry

3
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entry on cash account for a payment

CR entry

4
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when firm issues a bill to the client, includes item for professional charges and Vat

cant to show client owes the firm the charge and VAT (no movement of cash, but on client ledger account want to show on business side DR entry)

firm earned income and owes HMRC money

5
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when are entries recorded for disbursements

as and when they are paid, no entries are made on accounts in relation to disbursements when the bill is sent

6
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