Cash at Bank and in Hand

Introduction to Cash at Bank and in Hand

Cash at bank and in hand refers to amounts which are held by a business in the form of notes and coins (e.g. petty cash) or which are held at a bank in the form of on demand deposits such as current accounts and savings accounts.

Cash at bank and in hand is part of current assets in the balance sheet.

How do you record Cash at bank and in hand?

As there are usually a large number of entries, cash at bank and in hand transactions are not normally recorded directly into the general ledger.

Cash at bank movements are recorded in the Cash Book and cash in hand movements are usually recorded in the Petty Cash Book.

For example if a cheque is used to pay a supplier for 100, and an payment is received from a customer for 300 the following entries would be made in the cash book.

Cash Book
Date Narrative Amount Date Narrative Amount
8/5/2013 Supplier A 100
9/5/2013 Customer B 300
Cash In 300 Cash Out 100
Balance 200

Finally the totals in the cash book would be posted to the General ledger accounts using a journal

Double entry posting to the General Ledger
Cash 300 100
Purchase ledger 100
Sales ledger 300
Total 400 400
Cash at Bank and in Hand August 19th, 2017Team

You May Also Like


Related pages


fifo accounting calculatorintangible assets accounting treatment60 days eomjournal entries for bank reconciliation exampleapplied manufacturing overhead formulajournal entries basicstransposition error in accountingyear end closing entries examplescalculate beginning inventoryjoint venture accounting entriesformula for annuity future valuebalance sheet stockholders equity examplewhat is a prepayment in accountingallowance for accounts receivableinventory reorder pointhow to calculate cumulative interest formuladupont analysis calculatoroperating lease formulacash flow to creditoraccumulated depreciation normal balancehow to journalize transactions in accountingdeferred creditsbank reconciliation adjusting entriesdebits creditsgenerally accepted accounting principles concepts and conventionsaccrued interest meaningis notes receivable a current assetgeneral journal transactions exampledeferred creditscontinous compoundingmeaning of petty cash bookwip inventory definitionweighted average ending inventorymeaning of narration in accountinginventory turnover calculation examplecreditors control account definitionjournal entries for accrualsin a perpetual inventory systemweighted average contribution margin formulamandatory redeemable preferred stockgross profit calculationslabour rate variancelifo reserveunearned rent revenue balance sheetperiodic vs perpetual inventory systemretained earning debit or creditconsignee vs consignordupont analysis excelwrite off receivablepetty cash voucher formatoverheads in accountingreversal of deferred tax liabilitywhat is three column cash bookremittance advice chequerate of markup calculatora journal entry recording an accrualrepayment of premium bondsdirect costing formulaaccounting entries for closing a businessperpetual inventory system and periodic inventory systemeffective interest amortization calculatoraccounting templates for small businesslower of cost or net realizable valuebookkeeping wagesprofitability index calculationbank reconciliation exercisetransactional analysis quizbasic bookkeeping testcalculating margin vs markupdebtors ratioaccounting receivable processis unearned rent a liabilitygp percentage formulaunearned revenue debitjournal entry deferred revenueaccounting concepts principles and conventionsseries discount calculatorhow to calculate weighted average in excel with percentagesformula for turnover ratiodepletion of coalaccounting tabular analysisytm in excel