Cash Book

Cash Book consists of mainly two divisions - Receipts and Payments.

Payment side :
Payment entries are maintained in 7 columns

Bank/Treasury
To whom
Date Vr No Cash Classification
paid Cheque No. Amount

● Payments made in cash​--- entered in “cash column” on payment side

● Payments made by cheque​--- entered in “bank column” with cheque number
on the payment side

NOTE​: ​It may be kept in mind, that all cheque transaction will not be entered in
“bank column”. Cheques issued by the Drawing Officer/EE shall only be entered
in this column.
If cheques submitted by Contractors and others are remitted to bank, then entry
will be made only in “cash column”

● Cheque drawn while on tour​---- entered in the cash book when the disbursing
officer reaches HQ. The date of entry in the cash book is shown as numerator
and date of issue of cheque as denominator

● Purchase of Service postage Stamp​-- posted on payment side

NOTE: Purchase or Sale of Revenue Stamp​-- no entry is made in the cash book if
revenue stamps are sold or purchased
 ● Cash found short on intermediate count: ​posted on payment side as
“Miscellaneous Works Adavnce”

● Cancelled cheque​--- amount of cancelled cheque is entered as minus figure in

“bank column” on the payment side
Note : To cancel DD got made by PWD, it is entered on the Receipt side as
reduction of expenditure from the payment head concerned and on payment side
as cash remitted to Treasury/bank

● Renewal of cheque​--- when a cheque is lost or is more than 1 year old , a new
cheque can be issued in its lieu. The amount of the new cheque is not entered in
the “bank column” . Only a note in red ink that new cheque has been issued in
lieu of it, is kept in the column “To whom paid”

Entries :
1. Deposited Rs. 12000 into Treasury/bank on 1st June, 2005 by way of cash
remittance

To Bank/Treasury
Date Vr whom Cash Classification
paid Ch No. Amount

By cash
8782-Cash Remittance
1.6.2005 deposited 12000 - -
-Remittance into bank/try
to bank
 2. (a) Cheque No. 0846 for Rs. 2000 paid to “X” for repairs of road on 1st july,2007
by vr. No. 7
(b) Cheque No.3840 dated 22.02.2007 for Rs. 500 received from “A” remitted to
bank on 4th march

Bank/Treasury
Vr To whom
Date Cash Classification
No paid Ch No. Amount

By payment
1-07-07 7 0846 2000 3054-Road&Bridges-R/M
to X

By cheque 8782-Cash Remittance-

4.03.07 500 - -
deposited in Remittance to bank/try
bank

3. Divisional officer issued a cheque no. 6754 for Rs.3000 to contractor “Y” for
work P while in camp on 16th march. Enter it in the cash book as Vr. 6 on 20th
march on reaching Headquarters

Bank/Treasury
Vr To whom
Date Cash Classification
No paid Ch No. Amount

20.03
By payment
------- 6 6754 3000 Work P
to Y
16.03
 4. (a) Service postage Stamps worth Rs. 500 purchased vide cheque no. 3564,
Vr. 7 on 7th july,2006
(b) Revenue Stamps worth Rs. 50 purchased on 9th june 2007

Bank/Treasury
Vr To whom
Date Cash Classification
No paid Ch No. Amount

By
7.07.06 7 purchase 3564 500 2059-PW-Gen-D&A
of SPS

5. (a) On 10th july, 2005 physical balance of cash verified & found to be Rs. 850
instead of Rs.900
(b) On verification of cash on 6th nov, 2005 it was found Rs. 1000 which includes
counterfeit notes worth Rs. 250

Bank/Treasury
Vr
Date To whom paid Cash Classification
No Ch. Amount

By cash found
10.07.05 50 2059-PW-Gen-Suspense-MWA
short
By counterfeit
6.11.05 250 2059-PW-Gen-Suspense-MWA
notes
 6. (a) On 4th march, one cheque no. 6543 dated 4th jan for Rs. 2500 issued to “X”
for a work was cancelled.
(b) On the same day, a fresh cheque 2341 was issued in lieu of another old
cheque no. 5673 dated 7th jan for Rs. 7000 in favour of “P”

Bank/Treasury
Vr
Date To whom paid Cash Classification
No Ch No. Amount

Concerned
04.03 By cancelled cheque 6543 -2500
work

Fresh cheque issued to P

04.03 in lieu of cheque no.5673 2341
dated 7.01 Rs.7000