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

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Study for the AAT Level 2 Introduction to Bookkeeping Test. Use flashcards and multiple choice questions with hints and explanations. Prepare effectively for your 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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