Balance Per Books

Balance per books shows how much money should be in the bank, according to the business’s records.

During the month, you update the cash account with any cash transactions the business makes.

The cash account starts off with an opening balance.

Then you record all cash receipts and cash payments for the month.

As you do, the running balance is updated.

Cash receipts and cash payments equal bank deposits and withdrawals.

So the ending balance shows how much money should be in the bank, according to the business’s records.

The ending balance is known as balance per books.

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