Topic Assignment NO: 5 (Accounting for Cash and pass books & operations) Group Members Sheraz (22101001-045) Husnain (22101001-049) Hamza (22101001-106) Allah-Rakha (22101001-109) Section Gray Submit to Ma’am Sadia Aslam Course Fundamentals of Accounting Department (Software - Engineering) Submission date December 27, 2023 ---------- (Assignment No: 5) ---------What is Cash-Book? Def: As its name shows, the book that is used to record all transactions related to cash, is known as a cash book. It can be described as: • A cash book keep track the records of all inflows (receiving of cash) & outflows (payment of cash) of cash and bank. • it serves as a book of original entry as well as a ledger account. • Cash book follows the rules of real accounts (Real accounts means debits(what comes in) inflow and credit (what comes out) outflows). • A cash book is like a diary where we write down all the money coming in and going out of our pocket. Example: A cash book is like a money diary. For instance, if you sell a toy for $10, you write that down. If you buy candies for $5, you note that too. It helps you see how much money comes in and goes out, like a simple money history. Advantages of Cash book (1). No separate “cash account” is opened. (2). It prevent the duplication of work in recording cash transactions. (3). We can know the balance of cash in hand and cash at bank. (4). Misconceptions and mistake can be easily found by using cash book. (5). Provides a quick and clear overview of cash-related activities for easy checking and verification. Difference b/w Cash Book and Pass Book Cash Book Pass Book A cash book is a book that keeps a record of A book issued by bank to account holder that records transactions. deposit & withdraws. Prepared by firms Prepared by banks It serves the purpose of both journal and ledger The personal book serves the purpose of ledger accounts account only Receipts will be shown in debit side and payment Deposits will be shown in credit size while withdraws are entered in credit table. are shown in debit side. Debit balance shows cash at bank while credit Debit balance shows overdraft while credit balance balance shows overdraft. shows cash at bank. In a cash book a Business has direct control over Account holder has limited control; entries are made entries. by the bank. Types of cash book: There are four basic types of cash book that are the give below: Cash book Single column Cash book Double column Cash book Triple column Cash book Petty column Cash book 1. Single Column Cash Book: It contains the only one column that is cash column Debit(+) Date Credit (-) Particular L.F V.N Cash Date Particular L.F V.N Cash 2. Double Column Cash Book: It contains two columns that are cash and bank columns Debit(+) Date Credit (-) Particular L.F V.N Cash Bank Date Particular L.F V.N Cash 3. Triple Column Cash Book: It contains two columns that are cash, bank and Discount columns Debit(+) Credit (-) Date Particular L.F V.N Discount Cash Bank Date Particular L.F V.N Cash 4. Petty Cash Book: A book that is used to record the petty cash (small amounts). It is prepared by impressed system Debit(+) Credit (-) Analysis of payments Amount received C.B Date Particular Cash V.N Total Payment wages stationary cartage