Ca$h Book II.

Slides:

Advertisements

Similar presentations

AAT Level 2 Sales Ledger Control Accounts.

Advertisements

Chapter 14 Sales day book and sales ledger

Ledger  The book which contains accounts is known as the Ledger.  Transactions relating to a particular account for a given period are brought together.

4.3 – Account Balances & Terminology Chapter 4. What is the Balance in the Cash T-Account (Ledger)? 2.

Accounting Practices 501 Chapter 8 Balance Day Adjustments (Bad Debts)

Double-entry accounting. Introduction Every financial accounting transaction must be recorded twice in the accounts of a business: it must have one debit.

By S.K Chik. Introduction At each given date, our banker should send us a statement which shows the details of our bank transactions during a particular.

Chapter 13 Cash books.

Ca h Book. What’s on the menu? Difference between the cash and bank account Advantages of the cash book 2-column Cash Book Contra Entries Posting entries.

Bank Reconciliation Statement

Pass Journal Entries:  Mr. A started business with 50,000$.  Bought merchandise for cash 10,000$.  Sold goods for cash 15,000$.  Purchased goods from.

Why Record Transactions? To have a systematic recording of transaction  analyze  report to users Items that goes to Balance Sheet (Asset, Liability &

Control Accounts Reconciliation

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO4 Write off an uncollectible account.

Review HST recoverable – tax you paid for purchases related to business HST payable - tax you charge customers We analysed our transactions using HST.

 Bank reconciliation statement is a report which compares the bank balance as per company's accounting records with the balance stated in the bank statement.

THE JOURNAL CHAPTER 17. Books of original entry (day books) So far we have learnt that most transactions are entered in to the following: Cash book Sales.

College Accounting, by Heintz and Parry Chapter 12: Accounting for Purchases and Cash Payments.

Accounting For Cash Cash includes Currency, coins, money orders on hand Checking and money market accounts Undeposited checks on hand Cash equivalents.

CASH BOOK By: Waqar Ahmad Lecturer Management Science Department RANA University Kabul, Afghanistan

Bank Reconciliation Statement

UNIT-8 Accounting for Cash In order to keep proper records for information in future,the business concerns maintains many books. In each book it records.

Unit- 3. TYPE OF ACCOUNTS AND ITS RULES: There are three types of accounts namely Personal account, Real account and Nominal account. Personal account:

Topic three Measuring and recording transactions.

Date ParticularsDiscCashBank Date ParticularsDiscCashBank Date ParticularsCashBank Date ParticularsCashBank Date ParticularsCash Date ParticularsCash.

Books of Original Entry

© Hodder Education 2008 Errors. © Hodder Education 2008 Introduction Two types of error can be made by the book-keeper: 1.Errors which do not affect the.

Trading and Profit & Loss Account

CDA COLLEGE ACC101: INTRODUCTION TO ACCOUNTING Lecture 9 Lecture 9 Lecturer: Kleanthis Zisimos.

Ca$h Book III. What are we going to learn today? Dishonoured cheques and treatment in Cash Book Bank loan Bank overdraft.

1 Your father is very angry! Due to Economic crisis, the company your father is working for is unable to pay him salary for this month. However, his.

1 2 Your mobile phone bill shows that you have not settled last month’s amount. This month mobile phone bill shows an outstanding amount of $100 and.

1.The need for book-keeping 2. The accounting equation 3. The double entry system for assets, liabilities and capital 4. The asset of stock 5. The double.

Correction of Errors 1Purpose of a Trial Balance A trial balance is prepared to test the __________ of the book keeping. As every transaction recorded.

Content and design ©2012 Osborne Books Limited DOUBLE-ENTRY ACCOUNTS BALANCING.

Book - Keeping Double entry Book-keeping. Why set up a business?

CASH BOOK The cash book is merely the cash account removed from the ledger and bound in a separate book for the sake of convenience. Cash transactions.

FSTP Incomplete Records

Double Entry System 2 DRCR CASH BOOK know what is the purpose of a Cash Book. draw up a Two-column and a Three-column Cash Book. distinguish between.

Chara Charalambous CDA COLLEGE 1 ACC102: FINANCIAL ACCOUNTING Week 9: Lecture 9.

Depreciation of Non Current Assets

Finance Basics Illustration : Journalize the following transactions in the books of Shri K.K. Luhra, post them into ledger and prepare a trial balance.

CONTROL ACCOUNTS.

Book - Keeping Double entry Book-keeping. Activity - Financial Terms Capital Drawings Asset Liability Capital expense Revenue expense Returns inward Returns.

BALANCING ACCOUNTS The Trial Balance Mr. BarryA-level Accounting Year 12.

Cash and Receivables. CASH Cash is the most desirable asset because it is readily convertible into any other asset. Cash consists of Cash on hand (notes.

Ch. 3Balancing the Accounts 3 Cases of Balancing the Accounts 3 Cases of Balancing the Accounts 3 Cases of Balancing the Accounts 3 Cases of Balancing.

Balancing Accounts Mr. BarryA-Level Accounting Year 12.

Chapter 13 Single Entry: Incomplete Records. Introduction Incomplete records are normally prepared by businesses which lack professional management or.

3 Acctg in Action Examining the accounting system with personal & nominal ledger accounts.

Double-entry accounting

Correction of Errors.

Bank Reconciliation Statements

Wages Control Account.

Balancing Ledger Accounts

Manual Accounting & Computerized Accounting

Journals and Debtors control

Recap Analysis and Recording of transactions

BANK RECONCILIATION STATEMENT

Double-entry accounting

© 2014 Cengage Learning. All Rights Reserved.

Bank Reconciliation Statement

Bank Reconciliation.

LO4 Write off an uncollectible account receivable.

CHAPTER 5 HOUSEHOLD ACCOUNTS: THE ANALYSED CASH BOOK 21/05/2019

5-2 Posting Separate Amounts from a Journal to a General Ledger

Basic Accounting Entries

Presentation transcript:

Ca$h Book II

What are we going to learn today? Dishonoured cheques and treatment in Cash Book Bank loan Bank overdraft

A specimen cheque Bobby Tan Dollars Fifty only 50/= A cheque is an order to the bank to pay some other person a fixed sum of money on demand.

A dishonoured cheque Reasons for cheques being dishonoured: (a) signature not the same as the specimen given; (b) insufficient funds; (c) amount in words and in figures not the same; (d) cheque post-dated (e) signature missing; (f) incomplete particulars, etc..

What happen when a cheque is dishonoured? Reverse the entries recorded in the Cash Book.

Dishonoured cheque Record the entries into the Cash Book and ledger. Example 1 March 1 Joe owed you from sales $500 3 Joe gave a cheque of $500 5 Joe’s cheque was dishonoured by the bank. Record the entries into the Cash Book and ledger.

Journal Entry 1) Joe 500 Sales 500 3) Bank 500 Joe 500 5) Joe 500 Bank 500 Reversed

Cash Book Dr (IN) Cr (OUT) 2002 Joe 2002 Mar 3 Joe 500 Mar 5 Joe 500 Date Bank Cash Discount Particulars Cash Book Dr (IN) Cr (OUT) 2002 Mar 3 Joe 500 2002 Mar 5 Joe 500 Joe Mar 1 Sales 500 Mar 3 Bank 500 Mar 5 Bank 500

Dishonoured cheque Record the entries into the Cash Book and ledgers. Exercise March 1 James owed you from sales $150 7 James gave a cheque of $120 in full settlement of his account. Discount allowed $30 9 Jame’s cheque was dishonoured by the bank. Record the entries into the Cash Book and ledgers.

What happen when we need more cash? Bank loan Bank overdraft

Bank Loan • a certain sum of money borrowed from the bank Accounting entries: Dr Bank Account XX Cr Bank Loan XX

Bank Loan Example: On May 1, we borrowed $10000 from the bank. We put the money into our bank account. Bank Cash Discount Particulars Date Cash Book Dr Cr 2002 May 1 Bank loan 10000

Can we draw out more cash than what we have in the bank account?

Yes, we can provided our application for overdraft has been approved by the bank.

So when does it have a credit balance? Usually, bank account has a debit balance. So when does it have a credit balance? When we draw on the bank overdraft facility.

Example 1 – Bank Overdraft 2002 Jan 1 Christine’s Bank account in the cash book shows a debit balance of $500. She has an overdraft facility of $10 000. Christine bought an office equipment for $4 000 and paid by cheque. Jan 10 How much is Christine drawing on her overdraft facility? Is the bank account showing a debit or credit balance?

The overdraft facility limit is not to be recorded in the Cash Book. $ 2002 Bank Cash Discount Particulars Date Cash Book Dr Jan 1 Bal b/d 500 Cr Jan 10 Office Equipment 4000 31 Bal c/d 3500 Note: Christine is drawing $3500 on her bank overdraft facility. Christine’s bank account has a credit balance. She can continue to draw from her current account as long as the total credit amount does not exceed $10 000. The overdraft facility limit is not to be recorded in the Cash Book.

What have I learnt today? Dishonoured cheques and treatment in Cash Book Bank loan Bank overdraft