CONCLUSION The management and control of cash and bank transactions is of fundamental importance to any business. In an earlier chapter we looked at the procedures for dealing with cash receipts and payments, ensuring that all receipts and payments are properly recorded and accounted for. We also noted the importance of checking monies received and paid to any supporting documentation, checking the calculation of any entitlement to discounts and issuing written receipts. In this chapter you saw how receipts and payments are recorded in the cash and bank records of the business. Remember: a receipt of cash is recorded as a debit in the cash at bank ledger account a payment is credited to the cash at bank ledger account sales tax is recorded when the sales tax liability occurs which is when a cash sale or purchase takes place or the date when an invoice was created in respect of credit transactions sales tax and discounts received columns in cash and bank records are memorandum items. They must still be recorded in the general ledger.