Changes according to the hotel category. (c) Incidental charges not recorded in Cash Book ₹ 80. 600 not recorded in the Cash Book. Moreover, a cash book is a substitute for cash account in the ledger. 100.

Incidental deposits are set as per the hotel policy for security, which can be within a range of 80 to 100 $ against cash or card. (d) Cheques were issued for ₹ 7,800 but only ₹ 4,400 were presented for payment. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book. The balance of cash book and cash of a cash box must be equal. Bank charges are charged directly to the customer account thereby reducing the bank balance shown in the bank statement. Bank Charges not recorded in cash books shows that there is decrease in passbook but not in the cash book. The cash book is used to record receipts and payments of cash. 470 issued to the supplier was entered by mistake as a receipt in the Cash Book. Dividends collected by the bank not recorded in the cash book 1,800 Deposit made by a debtor directly into bank not recorded in cash book 4,500 18,300 26,300 Less : Cheques deposited but not yet collected 6,000 Bank charges recorded in bank books only 750
The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. The features of the cash book are as follows; Since only cash transactions are recorded in the cash book it is a special journal. 470 issued to the supplier was entered by mistake as a receipt in the Cash Book.

So, the cheques deposited balance will be reversed by deducting it from the balance to match with pass book balance. Cheques deposited but not credited in December, due to this there is increase in our book balance but not in passbook. In the same way no Bank A/c is opened in ledger for recording bank transactions, rather …
(b) A cheque of Rs. 350 were not entered in the Cash Book. So, the cheques deposited balance will be reversed by deducting it from the balance to match with pass book balance. On investigation, the following are the findings: (a) Bank charges of Rs. The balance of cash book always means cash in hand. Bank Charges not recorded in cash books shows that there is decrease in passbook but not in the cash book. (c) A cheque of Rs. This should explain the reason why the collection charges debited by the bank on Aug 18 th , have not yet been recorded in the cash book. 180 was returned by the Bank marked as ‘refer to drawer’ but it’s not entered in Cash Book.

Cash Book: A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. 1,000 was issued to a creditor on 27th December but unfortunately, the same was not recorded in the Cash Book. These charges are usually not recorded by the business until the bank provides the bank statement at the end of a month which is why balance as per bank statement may be lower than the cash book balance. Cheques deposited but not credited in December, due to this there is increase in our book balance but not in passbook. Cash A/c is removed from the ledger and instead of it the Single Column Cash Book is kept to record cash transactions. Single Column Cash Book. (iv) A credit side of the Bank Column of the Cash Book was under-cast by Rs. It works as a book of original entry as well as a ledger account. (e) Insurance premium paid by bank not recorded in the Cash Book ₹ 4,200. The cash book always shows a debit balance. Two/Double Column Cash Book: Definition and Explanation: Cash A/c and Bank A/c are two busiest accounts in ledger and they are removed from the ledger to reduce its volume and size.