Cash book and
bank reconciliation statement
Chapter # 3
Define Subsidiary book?
some transactions which are of
repetitive nature which need to record separately, So journal is subdivided
into different journal known as subsidiary books
Important subsidiary books
Cash book: it is used to record all
cash receipts and payments Receipts are recorded on Debit side and Payment on
Credit side.
Purchases book: It is used to record
all credit purchases
Sales book: It is used to record all
credit sales
Purchases return book: It is used to
record all goods return by us to supplier
Sales return book: It is used to record
all goods return to us by our supplier.
Bill receivable book: It is used to
record all accepted bills received us
Bill payable book: It is used to record
all bill accepted by us to our creditors
Journal proper: It is used to record
all those transitions for which there is no separate book
Define vouchers?
Answer: Vouchers are documents containing evidences of payments and
receipts.
How many kinds of cash book?
Answer:
There are three types of cash
books
- Single column cash book: which is used to record cash receipts and payments.
- Double column cash book: which has two column on both sides of cash. One is to record cash and other is to record banking transaction.
- Triple column cash book which has three columns on both sides of cash. One is to record cash Second is to record banking transaction and thirds is for discount
What is contra entry?
A transaction in which cash
account and bank account are involved is recorded on both sides of cash book.
Single column cash book
Dr Cr
Date
|
Particular
|
V.n
|
L.F
|
Amount
( cash )
|
Date
|
Particular
|
V.n
|
L.F
|
Amount
( cash )
|
Double column cash book
Dr Cr
Date
|
Particular
|
V.n
|
L.F
|
Discount
|
Cash
|
Date
|
Particular
|
V.n
|
L.F
|
Discunt
|
Cash
|
Triple column cash book
Dr Cr
Date
|
Particular
|
V.n
|
L.F
|
Discount
|
Cash
|
Bank
|
Date
|
Particular
|
V.n
|
L.F
|
Discount
|
Cash
|
Bank
|
What is a petty cash book?
Answer: The book in which small payments which are not convenient
to record in the main cash book the record is called petty cash book.
Imprest system
Under this
system the total petty expenses for particular period are estimated and that
amount is advance by the cashier.
B.R.S
What is bank reconciliation statement?
Bank reconciliation statements a
statement which contains a complete and satisfactory explanation of differences
in balance as per the cash book and bank statement
What is pass book?
Define bank statement?
A summary of customer’s account
is sent by bank periodically or on the request to know about transactions with
bank
Unpresented Cheque
Cheques which have been issued
for payment but may not be presented to bank by the creditor.
Uncredited cheque
Cheques which have been received
from customer and deposited into bank but may not have been credited by bank
Balance as per cash
book (Dr)
Add (Dr)
Issued but not presented/ drawn but not cashed
Directly deposited by Customer into bank
Dividend received, interest received, commission received,
Cash realized
Wrongly credited by Bank/ credited by bank
Interest on deposit/ interest on investment
Less (Cr)
Received but not credited/ UN collected/ omitted to sent to
bank
Directly paid by bank
Bank charges, bank commission/ cheques dishonored.
Wrongly debited by bank/ debited by bank
Interest on overdraft
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