Notes on lesson on Cash and Banking Transactions | kullabs.com

Cash and Banking Transactions

Notes

Cheque

Cheque is a written order issued by the depositor to a particular bank. Order cheque, bearer cheque and crossed cheque are the types of cheque. This note has information about cheque and it's types.

Rules for Drawing a Cheque

The considerations such as mentioning the date, name of the payee, signature, endorsement, etc. are to be followed in order to issue the cheque properly. This note has information about the rules to be considered while issuing cheque.

Pass Book and Cash Book

A cash book is a primary record of all the receipts and payments made in cash and through bank. It has the features of primary book and principle book. This note has information about cash book and its various types.

Petty Cash Fund

The petty cash fund is an amount, which is maintained by government office for making payments of small expenditures like refreshment, newspapers, postal stamp, taxi fare etc. This note has information about petty cash fund and various systems used in it.

Petty Cash Book

All petty expenses are paid through petty cash fund and their records are made in a separate book, which is known as petty cash book. Hence, the petty cash book is one in which all small items of expenses are recorded in a systematic manner made through petty cash fund. This note has information about petty cash book and its types.

Cash and Banking Transactions

A cash transaction refers to any business transaction, which involves immediate payment or receipt of cash. When a transaction is made through the bank, then it is called a ‘banking transaction’. This note has information about cash and banking transactions.