Bank Cash Book
Meaning and concept:
A bank cash book is a multi columnar cash book which records all the transactions incurred through bank. The main objective behind introduction of bank cash book in government offices is to bring control over the misuse and misappropriation of cash in government office. It is based on double entry system. It has two fold effects, one on debit side and another on the credit side with the same amount. It contains six main columns and eighteen sub-columns to record the transactions. Generally this book is closed at the end of every month.
Objective of Bank Cash Book
- To inform about the cash and bank balance.
- To provide information regarding deposit, withdrawals, and balance of cash in the bank.
- To help the preparation of bank reconciliation.
- To know about position of advance.
- To help for preparation of financial reports.
Importance of Bank Cash Book
- To maintain control over cash.
- To ensure the double entry system.
- To facilitate the preparation of Trial Balance.
- To facilitate cash planning.