is more than credit side , we show the closing balance in the credit side . But it is the closing debit balance and it is shown as current asset in the balance sheet .
Important : You must include both capital and revenue nature items in it . In following screenshot , you are seeing that we have added both furniture payment and salaries and wages . buying of furniture with cash is our capital expenditure . Payment of salaries and wages are our revenue expenditures . We will include both type of payments because we have to maintain the accounts of cash and bank . We are interested that we had 1240 in the beginning of time but when we have seen our pocket at the end of year we have Rs . 915 . What was happened in the year to bring difference in our pocket money . So , we have seen our each and every bill and started to record all the money which we receive through cash and bank . We also recorded all the payments which we have done through cash and through bank . Now , when we calculated our closing balance of this account , we are happy that our pocket money is matching with this account ' s closing balance .