Cash book accounting is a key part of the Processing Bookkeeping Transactions Course, Accounting Trainees must know how to record payments and receipts.
You are part way through the FREE ‘Processing Bookkeeping Transactions’ course and you should have read the pages listed below before reading this page:
Welcome to the Cash Book Accounting
Chapter 8 of the text book on the Cash Book includes the accounting treatment of:
Receipts from customers
Payments to suppliers
It is very important to know how discounts are recorded in the double entry system. They are also a popular topic with Accounting and Bookkeeping examiners.
Another topic that students often have difficulty with is distinguishing between different types of expenditure such as revenue and capital expenditure. This again is an important topic with examiners and a student should be able to define different types of expenditure and give examples.
Cash is the lifeblood of any business and it is important that the bookkeeper or the Accounting trainee knows the bookkeeping theory behind a cash book whether it is manual or computerised.
Basically the cash book is used to record money coming in and out of the business. The cash book will have many analysis columns for bank, VAT, discounts and other general expenses such as payments to petty cash.
The cash book is a book of prime entry and used for bank receipts and payments and is an integral part of the accounting double entry system.
It is vital that you as a bookkeeper or an accounting trainee understand the theory and principles behind cash book accounting. Try the quiz below and test your knowledge of the Cash Book Accounting.
Here is the link to amazon for the course books:
Quiz: Cash Book Accounting
Leaderboard for Cash Book1. jjhh-33 Points
2. -33 Points
3. -33 Points
4. Jo-33 Points
5. -33 Points