NOTES ON CASHBOOK MAINTENANCE

List each cheque in number order, showing date issued, to whom issued, cheque number and amount.
Now split the amount of each cheque across the page in appropriate columns. The "details" column must be used to explain amounts in the "other" column, or may give other explanations if thought useful.
List each deposit, showing date, any details, and the amount split into the appropriate deposit column.
The last column can give a continuing true bank balance by adding or subtracting the entry on that line as appropriate.
Using the bank statement when available, check off the cashbook entries to the bank statement. Then enter in the cashbook any items shown on the statement which are not already written in, e.g. bank charges, transfers, interest.
Total all the cashbook columns to the end of the month. If the dissections were done correctly, the total of the first money column will equal the sum of all the cheque dissection column totals.
The cashbook should be reconciled to the bank statement to ensure that it is error free. The bank statement balance at month end will rarely agree with the "bank balance" column of the cashbook.

To the bank statement balance must be added any deposits in the cashbook which are not yet recorded on the bank statement. Similarly, to this figure must be subtracted any cheques shown in the cashbook which have not yet been recorded on the bank statement.

This adjusted bank statement figure must be the same as the "bank balance" column figure in the cashbook to prove that there are no errors.

Cash Book Example

Date	To:	Cheque Number	Amount	Materials	Bank Fees	Vehicle	Phone & Hydro	Repair or Replace	Drawings	Other	Details	Receipts	Other	Bank
1/07/96	Balance forward													797.05
6/07/96	Telecom	123070	108.57				108.57							688.48
8/07/96	K&D Hardware	123071	20.45					12.50		7.95	Stationery			668.03
12/07/96	Self	123072	250.00						250.00		Housekeeping			250.00
14/07/96	BP Fuel	123073	97.50			82.00			15.50		Refreshments			320.53
20/07/96	Main Supplies Ltd	123074	125.79	125.79										194.74
28/07/96											Interest	230.55	12.32	437.61
29/07/96		B.S.	3.25		3.25									434.36
29/07/96		B.S.									Transfer		129.21	563.57


Month total			605.56	125.79	3.25	82.00	108.57	12.50	265.50	7.95		230.55	141.53
Year to date total

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