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