Meaning of Bank Cash Book with it's important and accounts

 Meaning of Bank Cash Book with it's important and accounts involved in bank cash book.

Meaning

 Bank cash book is multi column ledger prepared by operating level government offices to keep the records of cash and banking transactions. It helps to prepare record of cash account , bank account , budget expenditure account , advance account , and miscellaneous account.

Previously , it was prepared under A.G.F No 5 but currently it is prepared under A.G.F No 209.

Importance of bank cash book

1. It helps to make systematic and permanent record of cash and banking transactions.

2. It helps for easy audit making in the book of account.

3. It controls over cash and banking transactions.

4. It provides information on cash account, bank account, budget expenditure, advance account, and miscellaneous account.

 

Accounts involved in Bank cash book 

1. Cash account:

Cash account is used for recording cash transactions of the government offices. It has two columns. The debit columns and credit columns. The debit columns is used for recording cash receipts whereas credit columns is used for recording cash payment.

2. Bank account:

The bank account records the transaction perform through treasury's single account. The debit columns of this account the receipt of cash through treasury's single account and credit columns record payment through treasury's single account.

3. Budget expenditure account:

The budget expenditure account is used for recording budget heads. It has two columns. The budget head and budget head number. Budget heads records budget transaction where as budget heads number records head number of each budget.

4. Advance Columns:

Advance account is used for recording advance transaction of current fiscal year and previous fiscal year.

5. Miscellaneous account:

This account is used for recording the transaction which are not appeared in others account of bank cash book. It has two columns: the debit columns is used for recording debit transaction and credit columns is used for recording credit miscellaneous transaction.