Receipts and Payments

Bilateral Netting
A method of reducing bank charges in which two related companies offset their receipts and payments with each other, usually monthly, to save on transaction costs and paperwork.
Cash Basis of Accounting
An accounting method where transactions are recorded only when cash is received or paid. This method does not account for debtors, prepayments, creditors, accruals, stocks, and fixed assets.
Two-Column Cash Book
A two-column cash book that records receipts and payments made but does not record discounts allowed or discounts received.

Accounting Terms Lexicon

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