You make a loan of £20 cash to a friend. Later, she repays £12. What entries would you make in your personal ledger (if you were keeping one) to record the two transactions?
What entries would your friend make in her personal ledger to record the same transactions?
Do you see any similarities or differences in the pattern of the entries in the two sets of books?
You pay £100 cash into your current account at the bank. You later withdraw £30. Enter these two transactions in your personal ledger.
Now try to look at the same two transactions from the point of view of the bank—who receive your cash. How would they post the two transactions?
What similarities or differences do you see in the pattern of entries in your ledger compared with those in the bank’s ledger?
KeywordsCurrent Account Bank Account Routine Application Bank Statement Standing Order
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