Business Studies Cash Book Hospira 26th April

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Business StudiesCash BookHospira26th April
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Cash Book

• The cash book is used to record money coming into
  being paid out of a business. The money will
  either be cash or cheques
• The cash book can be used both in a business or
  in the household
• The first thing that we must do is come up with
  some short of system for recording our entries

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Cash Book

• Just like the side of the road we drive on, or
  the way we queue up at check-out ,we must come
  with a straight forward way of doing our cash
  book
• So lets start by drawing a line down the middle
  of our page thus dividing it in two parts. Let
  all money coming into us be put on the left hand
  side, all money leaving us go on the right hand
  side
• Now that we have a system lets try a few examples

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Cash Book

• 1st Feb received wages 800, however, had a total
  of 580 in expense that week in the house. What
  is our Balancing figure?
• Now we can add to our system design to make it
  easier for us to remember when how we spent our
  money.
• Add in the columns Date, Details

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Cash Book

• Eg. John paid the rent on the 4th Feb costing 90
• Now we are able to see exactly how we spent our
  90 what the date was
• Now we will use a 3 week period try to keep an
  up to date cash book

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Cash Book

• Joe Soap Week 1
• 1st July wages 700
• - Child benefit 200
• 2nd July groceries 50
• 3rd July Light heat 150
• 5th July Rent 300
• 7th July Petrol 60
• Week 2
• 8th July -Wages - 700
• 8th July - Over time - 100
• 10th July Groceries 150

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Cash Book

• 11th July Paid in for holiday 400
• 13th July- Petrol 50
• 15th July Paid TV licence 150
• Week 3
• 16th July Wages 800
• 16th July Paid for remainder of the holiday
  350
• 16th July - Groceries 100
• 18th July Petrol -30
• 19th July Rent 300
• 21th July Bought new table 250

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Cash Book

• From a business point of view what would be the
  easiest way for knowing how much your spending on
  individual things?
• Each of the transactions light heat, rent etc
  can be transferred to their individual accounts.
  These are known as expense accounts
• Double Entry
• For example if I buy a chocolate bar two things
  are happening, the first is that money is going
  out from my pocket the other is I am actually
  receiving the bar. This is known as a double
  entry