Page 245 - Office Practice and Accounting 10

9 Bank Cash Book

Introduction
According to new accounting system, every government office should deposit all
revenues into bank and payments should be made through cheque except petty
cash expenses. In order to have proper control and minimize the misappropriation
and embezzlement of cash, such provision is brought into practice. To keep the
transparent record of cash receipt and payment made through bank, a multicolumn
ledger account is prepared in operating level offices of government which is known
as bank cash book. It contains five different accounts and seventeen columns to record
various transactions so it is also called multicolumn ledger. Bank cash book serves as
a general ledger that records almost all transactions which are prepared on the basis
of their corresponding journal voucher. It is maintained under AGF No. 5.

This ledger was known and used as Maal Cash Ledger when there was no banking
facility. But as banking facilities became available, government offices began to
perform their transactions through bank, and Maal Cash Book was converted bank
cash book.
Bank Cash Book is based on double entry book keeping principle. Therefore, every
account maintained under this book has debit and credit side with same amount.
Generally at the end of every month, trial balance is prepared to check the arithmetical
accuracy of the books of accounts after the preparation of bank cash book.
A complete records of cash receipt and payment, bank deposit, withdrawal and
balance, advance given and cleared, budget expenditures , and budget release and
imprest fund is maintained in bank cash book. Thus five account maintained in bank
cash book is as under
i. Cash Account ii. Bank Account

iii. Budget Expenditure Account iv. Advance Account
v. Miscellaneous Account

i. Cash Account: Every receipt and payment of cash is recorded in this column.
All receipts of cash are debited and payment of cash are credited. At the end of
month total receipt and payment of cash is ascertained.
ii. Bank Account: It has four columns, namely debit, credit, cheque no. and
balance. All deposit amounts are debited and withdrawal amount are credited
with respective cheque no, if any. Balance column denotes the amount available

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