INSTRUCTIONS FOLLOWED FOR WRITING A CASH BOOK:
Followings
points should be kept in mind while writing a cash book:
1.
The cash book is divided in two
parts. Left hand side is kept for receipt transactions while right hand side
for payments. Receipts side has 5 columns and payment side 7 columns.
2.
The number of pages should be
verified before operating the cash book.
3.
Transactions of receipts and
payments should be entered as soon as they occur and in the order of their
occurrence.
4.
Entries should be made
continuously and no line is left blank. Entries should be recorded neatly and
in concise form.
5.
Over writing should be avoided.
All cuttings and interpolations should be initialed and dated by the officer in
charge.
6.
When payments are made by cheque,
its number and date are entered in column 10 and amount noted in column 11.