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What Is Banking Concern Cash Book? Importance Of Banking Concern Cash Book

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Bank cash book
What is Bank cash book?
Meaning of banking enterprise cash book
Bank cash mass was introduced equally part of the novel accounting systems to minimize the immature adult woman appropriation or embezzlement of cash. Such a mass is considered equally a mechanism to command together with safeguard cash of authorities office.
Bank cash mass was introduced equally part of the novel accounting systems to minimize the immature adult woman What is Bank cash book? Importance of banking enterprise cash book

Bank cash mass is also known equally full general ledger or multicolored cash mass of authorities office. It is 1 of the primary books of trouble organization human relationship maintained yesteryear operating degree role of authorities of Nepal for recording their cash together with banking enterprise transaction. It records cash receipts together with cash payment including budget release. It is also prepared alongside analytically column for cash account. Bank account, budget expenditure account, advance trouble organization human relationship together with miscellaneous account. It is prepared inwards a shape designed nether AFG No. 5, which includes 5 (5) trouble organization human relationship together with seventeen (17) columns. Each trouble organization human relationship nether this mass is divided into 2 column i.e. debit together with credit. It is prepared nether the regulation of double entry organization of mass keeping; it is a footing for preparing lawsuit remainder to banking enterprise check the arithmetical accuracy of the authorities office.
Importance of banking enterprise cash book
Bank cash mass is 1 of the nigh importance books of authorities accounting to endure prepared yesteryear operating degree officeholder of authorities of Nepal. It is importance for authorities role nether operating degree due ti next points.
• It shows the sum of expenditure, cash balance, banking enterprise remainder together with advance given together with cleared at whatsoever fourth dimension afterwards each transaction.
• It is required to gear upward lawsuit remainder which helps to banking enterprise check the arithmetical accuracy of finance transaction of authorities of Nepal.
• It helps to banking enterprise check the misuse, misappropriation together with embezzlement of cash.
• It is necessary to safeguard together with command cash inwards a proper way.
• It makes possible for cross checking alongside the remainder equally shown yesteryear the banking enterprise statement.
• It reduces the changes of tried together with misuse.
Special of banking enterprise cash book

Bank cash mass is a mass of trouble organization human relationship which is prepared nether auditor full general shape AGF No.5 together with it has 17 columns nether 5 dissimilar accounts. The specimen of banking enterprise cash mass is equally follows:
Column No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
heading

  • Date
  • Reference No.
  • Particulars
  • Debit of cash a/c
  • Credit of cash a/c
  • Debit of banking enterprise a/c
  • Credit of banking enterprise a/c
  • Cheque number
  • Bank balance
  • Budget expenditure caput no.
  • Budget expenditure
  • Advance paid
  • Advance cleared
  • Miscellaneous a/c  number
  • Debit of miscellaneous
  • Credit of miscellaneous
  • remarks

Explanation

  1. The dates of fiscal transactions are recorded.
  2. The code number or periodical voucher number is recorded serially.
  3. Short description of narration of the transaction is written.
  4. It is  used payment together with deposits of cash into banking enterprise are 
  5. All the cash payment together with deposits of cash into banking enterprise are recorded.
  6. All the receipts through banking enterprise are recorded.
  7. Issue of cheque for the payment of goods or services is recorded.
  8. The number of cheque issued for payment.
  9. It is used to present the banking enterprise remainder afterwards receipt together with payment of cheque.
  10. The budget caput or sub caput number is mentioned inwards cash of transactions relation to budget expenditure.
  11. The sum of budget expenditure is shown.
  12. The sum of advance given to whatsoever individual or political party for budget caput is recorded.
  13. It is used to tape the sum of advance cleared.
  14. The numbers of miscellaneous transaction are mentioned if any.
  15. It is shown other than cash, bank, budget expenditures together with advance. It shows solely debit sum of miscellaneous account.
  16. The credit of miscellaneous trouble organization human relationship is shown.
  17. It is used to tape whatsoever other data which is non mentioned inwards the other column.

Notes to remember, acre preparing banking enterprise cash book
• Before preparing banking enterprise cash book, periodical voucher should endure prepared. However, it tin endure prepared without periodical voucher too.
• Inter caput transaction of budget is non recorded inwards banking enterprise cash book.
• The sum of debit inwards periodical must endure posted inwards the debit column together with the sum of credit must endure posted inwards the credit column of the concerned account.
• Any transaction, which is non concerned alongside cash, bank, budget expenditure together with advance accounts, must endure recorded inwards miscellaneous account.
• No revenues are present inwards the banking enterprise cash mass except budget liberate of banking enterprise order.
• All the transactions are followed yesteryear regulation of double entry organization of mass keeping except advance given or cleared. The same sum should endure shown inwards the iii columns.
Preparation of banking enterprise cash book
Bank cash mass is a full general ledger together with it is prepared on the footing of periodical vouchers. While posting the transaction from periodical voucher to banking enterprise cash book, the full general rules for making debit together with credit of the transaction must endure followed. The next types of periodical voucher should endure prepared acre preparing banking enterprise cash book.
• General periodical voucher.
• Journal voucher for advance transactions.
• Miscellaneous periodical voucher.
Posting of a full general periodical voucher
General periodical voucher is also called ordinary periodical voucher. The periodical voucher prepared for recording budget expenditures nether dissimilar caput inwards authorities of role is known equally full general periodical voucher. Voucher relating to payment for salary, allowance, TADA, rent, furniture, machinery, role materials et are only about examples of full general periodical voucher.
Posting of advance given transactions
For advance given transaction, the sum is recorded inwards iii column of banking enterprise cash mass acre advance is given for official purpose; the same sum is recorded commencement on budget expenditure column, instant on credit column of banking enterprise trouble organization human relationship together with 3rd on given column of advance account.
Posting from miscellaneous transactions
Those transactions which are non related to budget expenditures, advance given together with advance clearance are known equally miscellaneous transactions. Budget release, revolving fund, piffling cash fund together with deduction from salary are instance of miscellaneous transactions.




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