How to Maintain Cash Book?

A Cash Book is a ledger that is used to keep the record of income and expenditure. Usually the cash book of FGEIs (C/G) schools and many other departments is maintained month wise. Each page is for one month. On the left side incomes during the month are shown while the right side is for expenditures during the same month. I have made the maintenance of Cash Book easy with the help of excel sheet. All the formulas have been put there. You just need to enter the incomes and expenditures and all the calculations will be made automatically.

Incomes in Cash Book

The right page is for incomes entry. Just enter the income in the column of “Cash Rs.” and “Bank Rs.”. Then you can distribute the main amount according to their categories.

Expenditures in Cash Book

The right page is for expenditures. As explained in income page just in the same way enter the expenditures at this page. All the calculations will be made automatically just mention the Balance as per bank statement that is obtained by the bank statement slip.

Some times there is difference in Bank Statement Balance and Cash Book Balance. This difference is due to the non credibility or non debit a certain amount by the bank. This mostly happens when we deposit/issue a cross cheque in bank and the cross cheque takes a time to be credited or debited. Suppose you have deposited a cheque of Rs. 2000/- and the bank not yet credited it then you will just write at the end, “A sum of Rs. 2000/- vide RV No. even dated even has not yet been credited by the bank. In the same way if you issued a cheque of Rs. 2000/- and the bank has not yet debited it then you will write, “A sum of Rs. 2000/- vide PV NO even dated even has not yet been debited by the bank. The heading of this line will be “Reason for Variation”.

Here is an important thing while you make entries in the cash book. When you complete the one month cash book, just copy the same sheet and copy “the balance as per cash book” row and paste it special “Special Paste” into the BBF (Balance Brought Forward) row. In this way the formula will not be disturbed.

 Maintain Cash Book

Also Enjoy:  Download Free Cash Book?


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