Page 257 - Account 10

iii. Simplicity in transfer of responsibility
In government office, the staff are transferred to another office and place or promoted.
At the period of transfer or being promoted, he should handover the responsibility; so,
the bank cash book provides all the factual and complete details of all the transactions. So,
it makes easier or simple to handover the responsibility.
iv. Provides information about advance transactions
It maintains separate account for recording advance transactions. So, it provides actual
and factual information of advance given, advance cleared and uncleared advance amount.

v. Helps to detect and correct the frauds
It helps to detect and reduce the frauds, misappropriation, misuse and embezzlement
of cash by the auditing of the books of accounts. It is the principal book of the operating
level offices because it is basic document of the office.

3. Different Accounts of Bank Cash Book
There are five accounts which are briefly discussed below:

i. Cash Account
The account maintained to keep the record of cash received and paid is called cash
A/c. It has two columns respectively debit and credit. Debit column is used to keep the
record of cash received or cash inflow and credit column is used to keep the record of cash
paid or cash outflow.

ii. Bank Account
The account maintained to keep the record of cash deposited into bank and withdrawal
of cash from the bank as well to see the balance of cash in the bank is called bank A/c.
It contains four columns respectively debit, credit, cheque no. and bank balance. Debit
column is used to keep the record of cash deposited into the bank, credit column is used
to keep the record of withdrawal of amount from the bank, cheque no. column is used to
keep the record of cheque number which is used to draw money from the bank and bank
balance column is used to keep the record of balance of amount which is remained in the
bank (Dr. Rs. - Cr. Rs.).

iii. Budget Expenditure Account
The account maintained to record expenditures is known as expenditure A/c.
It contains two columns respectively budget head no. and Budget expenditure. First
column is used to keep the record of related budget head number and second column
is used to keep the record of amount of expenditures. Amount of advance provided is
recorded as expenditure in the column until it is cleared. While clearing advance, amount
of advance provided is recorded inside the bracket and actual amount of expenditure is
shown outside the bracket.
iv. Advance Account
The account is used to keep the record of advance provided and advance cleared.
It contains two columns. First column is used to keep the record of advance given and
second column is used to keep the record of advance cleared.

256 Aakar’s Office Practice and Accountancy - 10 Bank Cash Book 257