Debits & Credits
Double Entry Accounting SystemChecking Cash Transactions
To check cash transactions, you check the control account, only.
![Debits-and-Credits-checking-cash](https://seeaccountingnow.online/wp-content/uploads/2021/02/Debits-and-Credits-checking-cash.gif)
How it Works
By month end, you should have a complete record of cash transactions.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc61.jpg)
You will have one record of them in the general accounts.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc62.jpg)
Because you use a double entry, you will have a duplicate record of those transactions in the checking account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc63.jpg)
As such, the checking account should contain the same transactions as shown in the other accounts.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc64.jpg)
For your record of transactions to be correct, they should be the same as those shown in the checking account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc65.jpg)
This why the checking account is known as a control account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc66.jpg)
All you need check is the control account.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc67.jpg)
If correct, because of the double-entry, all the other accounts should be correct, as well.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc68.jpg)
To check your record of cash transactions, you compare your checking account to the month end bank statement.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc69.jpg)
If the records agree, it shows the control account is correct.
![](https://seeaccountingnow.online/wp-content/uploads/2020/04/dc70.jpg)
Get a Full Understanding
In this mini course, you have seen how the double entry system works with one of the control accounts: the checking account
![dc71](https://seeaccountingnow.online/wp-content/uploads/2020/07/dc71.jpg)
If you want to fully understand the system, there are two other control accounts you should understand, as well.
![dc72](https://seeaccountingnow.online/wp-content/uploads/2020/07/dc72.jpg)
To do this, sign up for a free trial and read sections:
- Recording Customer Transactions
- Recording Supplier Transactions
© R.J. Hickman 2020