Maintaining cash Book, Posting and BalancingIn the case of a new business the amount
will be written in the cash column if the cash is introduced and in the bank
column if it is directly deposited in the bank with the words, "To Capital
Account "on the debit-side of the cash book. In the case of a continuing
business the opening balances are written as "To Balance b/d"
Receipt side of the cash book. (Dr. Side)It is used to record all receipts both in
cash and by cheques as also to record the discount allowed to our debtors while
receiving the payment. Cash receipts are entered in the cash column whereas
amounts received by cheques are entered in the bank column; (It is always
advisable to follow the practice of crossing all cheques received as "Payees Ale
only" and to be sent to bank for collection. This provides safeguard against
possible embezzlement) and discount allowed in the discount column.
Posting from the debit side of the cash bookIt is to the credit of the respective
accounts-in case if personal account credit is to be given for cash or cheque
received plus discount allowed. At periodical intervals cash and bank columns
will be balanced and the balance will be carried down to the next period whereas
discount column will be to totaled and posted to the debit side of "Discount
Allowed" account to be maintained in the ledger. Payment side of the cash book
(Cr. Side) is used to record all payments both in cash and through cheques as
also to record the discount received or availed by us from our creditors while
making payment to them. Cash payments are recorded in the cash column, payments
through cheques are entered in the bank column and discount received in the
discount column.
Posting from the credit side of the cash bookIt is to the debit of the respective
account-in case of personal accounts debit is to be given for the total of the
payments made and discount received. At periodical intervals the discount column
will be totaled and posted to the credit of "Discount received account" in the
ledger.
BalancingThe cash columns are balanced exactly in
the same manner as explained in the case of single column cash book. Discount
columns are totaled but not balanced. Bank columns are also balanced just like
cash columns. Since the banks allows overdraft therefore it is possible for, the
business to withdraw more than the amount deposited. In such a case the total of
the bank column on the credit side will be bigger than the one on the debit
side. The difference is written on the debit side as "To Balance c/d"
Bank (Cash Book) A/cWhenever cash is being handled by the
employees there is always danger that employees might embezzle cash. In order to
minimize this risk many of the business units follow this policy:
(i) All cash received is deposited in the
bank intact i.e.. no part of the cash received is used for meeting day-to- day
.payments ;
(ii) All cheques received are also sent to
the bank for collection;
(iil) All payments are to be made by the
issue of cheques.
However small payments like carriage,
postage, local conveyance etc., which. by nature, cannot be, paid by cheque
should be dealt through another cash book known as "Petty Cash Book". We will
discuss it later in this very chapter.
If the above scheme is adopted, then there
is hardly any chance that the employee receiving the cash can misappropriate
cash either temporarily or permanently. The only care you should exercise is to
see whether the daily total of receipts tallies with the amount deposited in the
bank (either on the same day or on the next working day) or not.
This can be verified from the counterfoil
of the 'pay-in- slip'. If you decide to make use of this type of .cash book for
your business then it should have only two columns on each side, Bank
&Discount. There is no need to have cash column. It may also be called as
"Cash book without cash column" or "Bank cash book".
How to write up? All receipts. whether in
cash or by cheque should be entered on the debit side of the book in bank
column. All payments to be entered on the credit side of the book in bank
column. Treatment of discount allowed and discount received' is the same as
discussed earlier.
Posting is also similar to as described
under triple column cash book. |
VAT Ready
GST Ready
Download
More Details
Buy Now
Note for International VAT USers and GST Users in India
Many business use services of Tax Consultants and Chartered Accountants for filing the Tax Return and the tax return of the software is not used. To assist such activity you can export all reports from the software to MS Excel or MS Word and submit it to your tax adviser for financial figures for the business . The software will perform all Inventory Control, Vouchers, Nominal Ledger Accounts along with Working/Trading and Profit & Loss account that will give you all figures ready for export for filing Tax Return. As soon as you are sure about the changes you want in the visual interface and printing regarding your GST requirements we will modify the software software as per your GST requirements. To get any of the off-the-shelf software modified for visual interface and printing please Contact Us Now. We will carry out all required customization for GST as per your requirements in the existing software in professional and timely manner . For any required customization as per GST in any of the off-the-shelf software, please contact us now. We will carry out required customization for GST as per your requirements in the existing software at nominal additional charges. Give us details of required customization for a man-hour or work estimate. For official reference to GST refer to following links:GST (Goods and Service Tax) Circular by Central Board of Excise and Customs (CBEC), Department of Revenue, Ministry of Finance, Government of India. Finance Act 2016 of Government of India HSN codes for Goods and Service Tax (GST) in India Central Board of Excise and Customs - HSN Codes Circular by CBEC, Government of India - About HSN Codes.
Central Goods and Services Tax (CGST) Rules, 2017 Draft government Approved Format Under Goods and Services Tax - Invoice Rules What is GST Compliant Business? What are the specific mandatory fields in an GST compliant invoice? Why the invoice an important financial instrument? What are Registered and Un-Registered Dealers? There is a lot for your business to catch up on those links along with online tax filing and registration for trading. Give us the details of required work you want in the off-the-shelf VAT accounting system and we shall make it GST compliant invoicing and accounting for your business at nominal additional charges. Cheers. Happy Accounting. If you want to know the details of for making VAT/CST system compliant to GST system: Standard rate of $15 per man hour shall be applicable for making any of off-the-shelf VAT based accounting software systems into CGST/SGST Compliant Accounting. Give the details of customization required in any of our off-the-shelf VAT accounting systems made for various business to get a quote of additional charges. See demo of software on website. See official Indian Government CGST/SGST Specification on the panel above here. Click for more information on Value Added Tax (VAT). Free Download of Full Featured Software - Try Full Featured Software Before Order - Time Limited 30 days Full Featured Version of these software are available for download from our website www.freeaccounting.in. HiTech Billing, Accounting Software Off-the-Shelf versions are available for Business, Traders, Industry, Hospital, Hotel, Petrol Pump, Medical Store & Distributor, Automobile or Motorcycle Dealers, Newspaper or Magazine Publishers, VAT Accounting & Billing and Commodity Brokers. | ||||||
Send Email Now
