Bank Receipts Book

This records all the money you pay into your business bank account, regardless of where it comes from. If you have more than one business bank account, as the business involved in the example used in this book has, you need to have separate columns in your bank receipts book to show into which bank account money has been paid. In the case of the example this means a column is needed for the current account and another for the deposit account.

A bank receipts book is laid out as follows:

  1. In the first column write the date that you were paid the money.
  2. In the second.
  3. Then head up three columns called:
    – sales
    – other, and
    – total
    If money banked comes from a sales invoice then the total is put in the sales column. If it comes from any other source it goes in the other column. This may be money you have lent to the business, or refunds from suppliers, or bank interest received on either a deposit or current account. The total column should be used for. The total column should be used for the total value of each paying slip, whatever the money was for. The total figure is put in the column that relates to the account into which the money was paid. The example shows that this is a lot easier than it sounds.
  4. Finally you will need a column entitled “VAT Memo”. If you have been paid for a sales invoice there will have been some VAT included in the payment. That VAT amount needs to be entered in this column. This figure does not come from the paying in slip. You will have to go back to the invoice or to the sales list to find out how much VAT was included. Enter here the VAT element of cash received relating to sales invoices. There should be no VAT on an entry made in the “other” column because these relate to non- sales cash received into the business such as money you have paid in.
  5. Write the sales invoice reference number next to appropriate sales receipt.

What does the bank receipt book look like?

Something very much like this:

DateNameSales number or other infoSales £Other
A/c £
A/c £
VAT Memo
5.6.02R Hall198587.50587.5087.50
14.6.02SA software201940.00940.00140.00
16.6.02A B Mags1971762.501762.50262.50
27.6.02IT DesignCo1991351.251351.25201.25
7.07.02A B Mags2002232.502232.50332.50
10.7.02Insurance claimSee letter on file220.00220.00
24.7.02J Graphics202352.50352.5052.50
30.7.02IBP Magazines2051762.501762.50262.50
30.7.02Bank interestBank statement10.1110.11
3.8.02Mega Records2041028.131028.13153.13
4.8.02SA Software2063525.003525.00525.00
4.8.02R Hall207763.75763.75113.75
16.8.02J Graphics210587.50587.5087.50
20.8.02N Bates211940.00940.00140.00
28.8.02A B Mags2091997.501997.50297.50

Things to note about the bank receipts book:

  1. Make sure you fill out and keep copies of your entire bank paying in slips and write up the bank receipts book from these. The Inland Revenue and Customs and excise could ask to see these paying slips so it is vital you keep them.
  2. When you get your bank statement check you have not been paid anything straight into it, such as a payment direct from a customer or bank interest. If you have been, update the bank receipts book for whatever has been paid to you.
  3. At the end of each month underline the last entry for the month and add up the columns. Sales receipts plus other receipts should equal the total of the current and deposit account columns.
  4. If you ever take cash, and keep it you will need an extra column called “cash” which is treated in the same way as the current account and deposit account columns.

What does the bank receipts book tell you?

The bank receipts book tells you:

  1. Who has paid you.
  2. The total VAT that you owe to customs and Excise for a quarter. To find this out add up the VAT Memo column for the quarter covered by your VAT return.
  3. How much you have paid into the bank.

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