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Hi All
I am making sense of some of the different books that we have now. To aid this I am working back through the units creating my own set of the books.... but there is something that is really puzzling me...
I started off understanding that there was a different set of books for cash and for credit accounts. In module 1.2 Cruella buys a mop and the net of the purchase is recorded in a General Ledger account for cleaning supplies and not in the Cash Purchase book. This said to me that when the transaction involved till money the net goes in the G/L rather than the Cash Purchases.
But, when she raises a refund for some hay the net of the refund has gone in the same ledger as the credit note she raised for Wagtails which is the Sales/Returns Daybook.
Is the mop recorded in the G/L because it is an expense rather than a cash purchase of something that is going to be sold. Am I right in thinking that if she had bought some hamster food to sell it would have gone in the Cash Purchases account?
Thanks for listening to me babble... I have already worked stuff out just by writing this post.....
....ah... I am now further on in creating these books and I have got to balancing them...
Earlier it told me to put the credit note for a credit sales in the returns page of the sales ledger, the same place as the cash refund... but I am now balancing the wagtails account and the credit note has appeared on their page!!!! It makes more sense to have it there as it relates to their account, but it deffinitely showed it in the same place as the cash refund!!
I don't know whether I am stupid or there are some serious inconsistencies...
Edited at 07 Nov 2011 11:22 PM GMT
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