Scribd Logo
Upload

Welcome to Scribd!

  • 4 views

    Units 6 - Cashbook Part 1

    Uploaded by

    Shanea Grant

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd

    Units 6 - Cashbook Part 1

    Uploaded by

    Shanea Grant
    4 views17 pages

    Copyright

    © © All Rights Reserved

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    4 views17 pages

    Units 6 - Cashbook Part 1

    Uploaded by

    Shanea Grant

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 17

    Fundamental

    s of
    Accounting
    Cashbook
    Unit Objectives
     Explain the purposes of a cashbook.
     Record transactions in the cashbook.
     Explain the rationale for the bank reconciliation
    statement.
     Explain the main reasons for differences
    between the cash book and the bank statement.
     Prepare the bank reconciliation statement.
    What is Cashbook?
    A cash book is a financial
    document that contains all
    cash receipts and payments,
    including bank deposits and
    withdrawals.
     The cash book is set up as a
    ledger in which all cash
    transactions are recorded
    according to date.
    Format of the Cashbook
     All transactions in the cash
    book have two sides: debt
    and credit.
     All receipts are recorded on
    the left hand side (debit),
    and all payments are
    recorded by date on the
    right hand side (credit).
    Format of the Cashbook
    (Cont’d)
    DR Two-Column Cashbook CR
    DATE DETAILS FO CASH BANK DATE DETAILS FO CASH BANK
    L. L.
    Types of cashbooks
     Ina two column cashbook we will record
    transactions as it relates to the bank
    and cash accounts. Hence “2” columns.

     Thethree column cashbook incorporates


    discounts that have been received
    (credit) and discounts allowed (debit.
    The inclusion of these makes it “3”
    column.
    Three-Column Cashbook

    Format of the Cashbook


    (Cont’d)
    DR Three -Column Cashbook CR
    DATE DETAILS F DIS CASH BANK DATE DETAILS F DIS. CASH BANK
    ALL REC.

    1 2 3 1 2 3
    Examples
    Write up the three-column cashbook for
    Donna Gardener for the month of June 2014
    from the following transactions:

     June 1 Balances brought down Cash


    $4,200; Bank overdraft $5,230
    DATE DETAIL F DIS CASH BANK DATE DETAILS F DIS. CASH BANK
    S ALL REC.

    June 1 Bal 4,200 June Bal b/d 5,230


    b/d 1
    Examples (Cont’d)
     June 1 Bought stationery $1,050 by
    cash
    DATE DETAIL F DIS CASH BANK DATE DETAILS F DIS CASH BANK
    S ALL .
    RE
    C.
    June Stationer 1,050
    1 y
    Examples (Cont’d)
     June2 Sold goods $13,500 by
    cheque
    DATE DETAIL F DIS CASH BANK DAT DETAILS F DIS CASH BANK
    S ALL E .
    RE
    C.
    June 2 Sales 13,500
    Examples (Cont’d)
     June 4 Paid the following their
    accounts by cheque, receiving a
    5% discount: M. Waugh
    $4,000; I. Healy $5,000; G.
    DATEMcGrath
    DETAILS F $5,500
    DIS CASH BAN DATE DETAILS F DIS. CASH BANK
    ALL K REC.

    June 4 M. Waugh 200 3800


    June 4 I Healy 250 4750
    June 4 275 5225
    G. McGrath
    Examples (Cont’d)
     June 3 Received rent $3,000 in cash

    DATE DETAILS DIS CASH BANK DATE DETAILS DIS. CASH BANK
    ALL REC.

    June 3 Rent 3,000


     We continue recording the transactions
    stated until all have been included in
    the Cashbook.
     Please remember that only transactions
    that relate to cash, bank and discounts
    are recorded in the 3 column cash book.
    Points to note
     June 18 transaction is “contra entry” it
    affects both sides of the cash book.

     There is no harmony or relationship between


    discount allowed and discount received,
    hence they do not have a balance c/d.

     The cash and bank columns have to be


    balanced off.
    What it should look like!!!
    Donna Gardener Three Column
    Cashbook
    DATE DETAILS F DIS CASH BANK DATE DETAILS F DIS CASH BANK
    ALL REC
    June June
    1 Bal b/d 4,200 1 Bal b/d 5,230
    2 Sales 13,50 1 Stationery 1,050
    3 Rent 3,000 0 4 M. Waugh 200 3,800
    8 F. Rose 300 4 I. Healy 250 4,750
    8 I. Bishop 175 5,700 4 G. McGrath 275 5,225
    8 C. Walsh 225 3,325 11 Office Equip 4,000
    17 Sales 4,275 15 Insurance 3,500
    18 Cash 8,000 18 Bank 3,000
    22 Commission 3,000 26 Wages 9,000
    6,530 30 Bal c/d 3,150 8,825
    ------ --------- ------ ------- ---------
    700 7,200 --------- 725 7,200 44,33
    === ==== 44,33 == ==== 0
    = 0 = ====
    ==== =
    =

    July
    1 Bal b/d 3,150 8,825
     Now go practice your tutorial
    questions!!!

     Ifyou have any questions, do forward


    them to your tutor!!

     Have an awesome day

     Next up the bank reconciliation


    statement
    END OF CLASS

    You might also like