Cash Journal

Solution: Bank Column Cash Book

bank and cash balance bank balance:A bank balance is that amount which is actually deposited in any of the bank. or the amount which has been credited in your bank account. cash balance: It is an amount which is there in your hand. i.e., it is otherwise called as cash in hand. or else we can say that the hot cash which is there with you right now is called as a cash balance. conclusion:bank balance is the amount deposited in bank. and cash balance is the cash in hand. Verify correctness of the cash balance and bank balance The following procedures should be applied:

Surprise cash count: cash counts must be performed without the custodian being informed in advance e.g. on a surprise basis. Control all cash funds: until the completion of the count to prevent cash being transferred between funds to conceal deficiencies. Count in the presence of the custodian: to ensure the auditors cannot be blamed for any shortage. List each item in the fund: showing the denominations of notes and coins. The custodian should sign: the record as evidence of agreement. Agree the total to the petty cash book balance: and investigate any differences.

Which statement would you prepare to reconcile the balance as per cash book and balance as per bank statement?

The Balance as per Company Books reflects the balance as on the last date (in the example, it is 30th April).

The Amounts not reflected in Bank are the debit and credit sums of all those vouchers, whose Bank Date is either BLANK, or LATER than 30-Apr (i.e. these vouchers have not yet been reflected in the bank statement). The Balance as per Bank is the net effect of the Book Balance offset by the amounts not reflected in the Bank which must be equal to the balance in the bank statement