Cash Book

Maintaining Cash Book

A cashbook is a primary book of entry that is prepared after a voucher for a particular transaction. The cash book records all transactions in which cash /bank receipts are involved.

• A double column cashbook that can act as a bankbook or a single column cashbook (in case a bank book is maintained separately) has to be maintained.
• No cutting or alterations should be made in the cashbook. Correction fluid should also not be used. Any mistake should be corrected by passing a rectification entry.
• Cashbooks have to be written regularly (as and when a transaction takes place). All cash balances should be inked up regularly.
• The Cashbook has to be tallied checked and signed by the competent authority or any other appropriate authority every month.
• Cashbooks should always remain at the office.

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