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Cash Book Class 11 ONE SHOT | Accounts GAURAV JAIN

THE GAURAV JAIN・42 minutes read

The video covers the cash book in four parts and explains the fundamental law of debit what comes in and credit what goes out, emphasizing that the cash book records only cash-related transactions. The chapter highlights the simplicity of the cash book compared to the general ledger, serving as a substitute for cash transactions and ensuring accurate recording through various transaction scenarios.

Insights

  • The cash book simplifies transaction recording by focusing solely on cash-related activities, adhering to the rule of "Debit What Comes In and Credit What Goes Out."
  • Different types of cash books, like single column and double column, cater to specific needs, with single column cash books exclusively tracking cash transactions and ensuring a debit-heavy balance.

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Recent questions

  • What is the purpose of a cash book?

    To simplify recording cash transactions efficiently.

  • What does a single column cash book record?

    Only cash transactions, excluding bank transactions.

  • How does a double column cash book differ from a single column cash book?

    Combines cash and bank accounts for easier tracking.

  • What is the purpose of a petty cash book?

    To manage small expenses separately.

  • How are expenses recorded in a petty cash book?

    Individually, specifying date, voucher number, and payment method.

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Summary

00:00

"Mastering Cash Book: Simplifying Accounting Transactions"

  • The video will cover the cash book in four parts: basic theory, single column cash book, double column cash book, and petty cash book.
  • The chapter on cash book is considered the easiest in 11th-grade Accountancy.
  • The fundamental law to remember is "Debit What Comes In and Credit What Goes Out."
  • Cash book records only cash-related transactions, not credit or loan transactions.
  • Cash book was created to simplify recording transactions compared to the general ledger.
  • Cash book serves as a substitute for the general ledger for cash transactions.
  • Cash book records both cash and bank transactions, following the rule of debiting inflows and crediting outflows.
  • Single column cash book only records cash transactions, excluding bank transactions.
  • In single column cash book, no bank transactions, loan transactions, or cash discount transactions are recorded.
  • Single column cash book will never have a credit balance, ensuring the debit side is always greater.

14:50

"Double Column Cash Book Simplifies Tracking"

  • Total amount spent: 65
  • Days passed: 47
  • Office furniture bought in cash for 4650
  • Goods sold for cash amounting to 25000
  • Received cash from Rakesh: 4850 with a discount of 50
  • Paid wages in cash
  • Paid for stationery in cash
  • Salary paid: 15900, Rent paid: 15000
  • Balance in cash book: 29900
  • Explanation of a double column cash book: combining cash and bank accounts for easier tracking

30:17

Effective Cash Book Management Techniques

  • Withdrawal of 5000 paise: Debit cash and credit bank if cash is received, changing names accordingly to avoid confusion in the cash and bank columns.
  • Handling checks: If a check is received but not deposited immediately, make an entry in the cash book as "Check in Hand to [Name]" to avoid forgetting the check.
  • Delayed check deposit: If a check is received and deposited after a few days, make an entry as "Bank Account Debit to Check in Hand" to track the check's origin.
  • Contra entry: When withdrawing money from the bank, create a contra entry with debit to cash and credit to bank.
  • Salary payment: Record office salary payment in cash to reflect the outflow of money.
  • Sale of goods: If goods are sold in cash and deposited in the bank on the same day, consider making two entries to show the transaction clearly.
  • Rent payment: Record the last rent payment by check as a debit to rent and credit to bank.
  • Petty cash book: Explain the concept of a petty cash book, where a sub-cashier manages small expenses and maintains a separate account for tracking these costs.
  • Impress System of Cash Book: Describe the system where a fixed amount is allocated monthly for petty expenses, with any remaining amount carried forward to the next month.
  • Analytical cash book: Detail the simple process of maintaining a petty cash book to track small expenses efficiently.

43:56

Effective Expense Recording and Management Guidelines

  • Receipts should be recorded in the first column, including the date, voucher number, total payment, and reason for payment.
  • Details of expenses should be noted individually, specifying the date of receipt, voucher number, and method of payment (bank or cash).
  • Expenses such as stationery and courier should be recorded in separate columns, with amounts clearly stated for each category.
  • At the end of the month, total expenses should be calculated, and any remaining balance should be transferred to the next month's account.
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