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.