AA015 Chapter 6

Program Matrikulasi Satu Tahun Perakaunan

Chapter 6:
Accounting for Cash

Contents

Definition Of Cash
Cash Book/Cash Receipt Journal and
Cash Payment Journal and Bank Statement

Bank Reconciliation

6.1 DEFINITION OF CASH

The most liquid assets

1. Coin 3. Cheque
2. Money Paper 4. Money Order

CASH

5.Money in hand 7.Whatever the
6.Savings in bank bank accept as
deposits

6.2 Cash Book/Cash Receipt Journal and
Cash Payment Journal and Bank Statement

1. Record the receipt of cash and cash
payment/cheque.

2. Able to detect the accuracy of the
flow of Cash.

3. Show cash balance on hand and at
bank

EXAMPLES OF CASH BOOK

(2 COLUMN)

Date Details Cash Bank Date Details Cash Bank
June 1 b/f 5000 11200 June 2 300

6 Sales 600 5 Al-Ali 1500

8 Al-Bakri 150 16 Stationery 120

30 Balance 5030 10000
5150 11800 c/f 5150 11800

July 1 b/b 5030 10000

EXAMPLES OF CASH BOOK

(3 COLUMN)

(3 ruangan)

Date Details Discount Cash Bank Date Details Discoun Tunai Bank
t 300

June 1 b/f 5000 11200 June 2 Purchases

6 Sales 600 5 Al-Ali 15 1500

8 Al-Bakri 10 150 16 Stationery 120

c/f 5030 10000

10 5150 11800 15 5150 11800

July 1 b/f 5030 10000

BANK STATEMENT

1. Shows the sum received by the bank.
2. Shows the amount paid by the bank on his

behalf and bank charges.
3. Compares between the details of bank

statements with cash book / bank account.
4. Detects any mistakes by the bank or by

business
5. Detects fraud
6. Detects why the balance in the bank

statement is not the same with the cash book

EXAMPLES BANK STATEMENT

Date Cheque Description Debit Credit Balance
Number (RM) (RM) (RM)

July 1 10000
3
4 00010 5000 15000
7
9 1250 13750

15 00011 Notes Payable 1000 14750
31
Cheque Book 15 14735

500 14235

Bank Charge 10 14225

Jumlah 13025 6000

EXAMPLES BANK STATEMENT

6.3 BANK RECONCILIATION

Adjustments of the amount of the different
between the cash book and the bank statement.

Purposes:
1. As evidence that the differences appeared

are not due to an error.
2. The accuracy of the entries in the Cash

Book can be verified without any deliberate
error.

THE DIFFERENCES BETWEEN THE CASH
BOOK AND BANK STATEMENT

recorded in the Recorded in the
cash book but bank statement
not recorded in but not in the

the bank cash book
statement
Errors

REASONS for
DIFFERENCES

THE DIFFERENCES BETWEEN THE
CASH BOOK AND BANK STATEMENT

Deposit in Outstanding Non Sufficient
transit Cheque Fund( NSF) -
Bounced Cheque
Recorded in
the cash book
but there are
no records in

your bank
statement

THE DIFFERENCES BETWEEN THE
CASH BOOK AND BANK STATEMENT

Collection by the bank

bank service Standing
charge instruction

Recorded in
the bank

statements
but not in the

cash book

THE DIFFERENCES BETWEEN THE
CASH BOOK AND BANK STATEMENT

By the bank By the business
(Understated or (Understated or
overstated bank
statement balance) overstated in
cash book
balance)

Errors

RULES RECORDING IN CASH BOOK AND
BANK STATEMENTS

Dt. Cash Book ( Bank Column) Ct.

+-

Acceptance of cash, Cash payment,
Cash Books shall be Cash Book will be
debited credited

On the other hand in the Bank Statement:

Bank Statement

Money Out Money In
Dt. Ct.

- +

Cash payments, Cash receives,
Bank statements Bank statements
will be credited
will be debited

FORMAT OF BANK RECONCILIATION

Syarikat Senang Hati

Bank Reconciliation Statement

as at 31 December 2015

RM RM

Cash Balance Per Bank Statement xxxx xxxx
xxxx
Add :
xxxx
Deposit In Transit XXXX xxxx

Errors (bank)

Receipts understated xxxx

Payments overstated xxxx

Deduct : xxxx
Outstandings Cheque
Errors (bank) xxxx
Receipts overstated xxxx
Payments understated

Adjusted Cash Balance Per Bank

FORMAT OF BANK RECONCILIATION

Cash balance per cash book xxxx
Add :
xxxx
Receivable Notes (RN) xxxx
Interest Revenue RN
Errors (cash book) xxxx
Receipts understated xxxx
Payments overstated xxxx xxxx

Deduct : xxxx
Non Sufficient Fund (NSF) cheque
Bank Service Charges xxxx
Collection Charges xxxx
Rent expense( standing order) xxxx
Errors (cash book)
Receipts overstated xxxx
Payments understated xxxx
xxxx (xxxx)
Adjusted Cash Balance Per Book
xxxx

SUMMARY

1. Cash is the most liquid asset.

2. Internal controls are important for cash receipts and
payments that include setting tasks, segregation of
duties, physical control, pre numbered documentation,
verification and rotation of task.

3. The cash book is used to record the business cash
flows which is handled by the business.

4. Bank statement records the business cash flow
business which is administered by the bank.

5. Bank reconciliation is prepared to co-ordinate the
differences that occur between the bank statement and
cash book.

Program Matrikulasi Satu Tahun Perakaunan