Cash - 8

cash, cash register, office use, office safe

cheque, bank, electronic funds transfer

A cheque in which the payer’s bank has refused to pay the amount on the cheque to the receiever of the cheque (payee).

The cheque has expired, is post dated, has information that is inconsistent or incomplete, or the payer’s bank account either does not have enough money or is closed/frozen

Debit Trade Receivables (A+) and Credit Cash at Bank (A-) and Credit Discount allowed (if any)

Trade discount & cash discount

It is a reduction to the list price given at the point of sale. No

A reduction to the invoice price (amount owing and to be paid by credit customers) given at the point of payment of receipt made. Yes as discount allowed (expense) & discount received (income)

For a business to safeguard its assets, ensure its transactions are recorded accurately and to comply with laws and regulations

Segregations of duties so that no single person has control of cash, custody of cash by keeping it in locked storage, authorisation and bank reconciliation

To calculate accurate cash at bank balance after updating its account, to identify any errors in the bank statement or cash at bank account, to deter fraud and to find items/transactions causing ending balances of cash at bank account and bank statement to be different

Deposit in transit

Cheques not yet presented

Debit column - Withdrawals of cash. Credit column - Deposits of cash. This is because the bank sees your money as a liability

Start with Balance as per bank statement and have all add transactions under Add: deposits in transit and all less transactions under cheques not yet presented and end off with adjusted balance as per cash at bank account