Bank cash book is a multi-column ledger prepared by operating level offices of the government of Nepal to maintain the record of cash & banking transaction under AGF No. 5. It is a statement, which keeps the record of cash receipts and payments made through the bank. It is a book prepared by operating level offices for recording their banking transactions. It maintains the record of cash receipt and cash payment which are made either in cash or through cheque. It prepared on the basis of journal voucher. The bank cash book is based on the principle of the double-entry system. It keeps the record of every financial transaction affecting its debit and credit account. It is closed at the end of each month. A trial balance is prepared to ascertain whether the posting made in the bank cash book is correct or not.
The main objectives of bank cash book are as follows:
Bank cash book is an important book to be maintained by operating level government offices. It is necessary to safeguard and control over cash in an effective manner. The main importance and advantages of bank cash book for government offices are as follows: -
Bank cash book is an important financial statement of government office. It should be prepared systematically by following the principles of double entry system of book-keeping. The effect of one financial transaction is made on debit side one account and credit side of another account. While preparing the bank cash book, the following points should be considered carefully:
Which one of them is the objective of bank cash book?
To control over cash and banking transactions effectively.
To hide the bank balance of the office at any given point of time.
To make temporary record of all cash and banking transactions.
To hide the position of cash account, bank account, budget expenditure account, advance account and miscellaneous account.
Which one of them is the importance of bank cash book?
All the options are correct
It keeps the systematic record of all cash and banking transactions of a government office in complete form.
It helps for estimating cash requirement and disbursement.It shows the bank balance of the government office on any given point of time.
It helps for effective safeguarding and controlling over cash and banking transactions.
Bank cash book prepared under AGF No. ______.
A statement, which keeps the record of cash receipts and payments made through bank is called ______.
bank cash book
All the transactions which do not affect cash, bank, budget expenditure and advance accounts are posted as per ______ on debit and credit column of the miscellaneous account.