CASH BOOK, PASS BOOK, BANK
Dr. Jyotsna Sethi, Rekha Rani
14.3 Cash Book
14.4 Types of Cash Book
14.4.1 Simple Cash Book
14.4.2 Two Column Cash Book
14.4.3 Three Column Cash Book
14.5 Petty Cash Book.
14.5.1. Imprest System of Petty Cash Book.
14.5.2 Advantages of Petty Cash Book
14.6 Pass Book
14.7. Bank Reconciliation Statement
14.7.2. Causes for difference between Cash Book Balance and Pass
14.7.3. Need and importance of Bank Reconciliation Statement
14.7.4 Procedure for preparation of Bank Reconciliation Statement.
14.10. Self Assessment Questions
14.11. Answer to check your progress
14.12. Further Readings
Every entrepreneur should have knowledge of cash book and pass book as
from these books, he may check how much balance is available to him for
meeting his expenses and liabilities and what are the details of receipts and
payments of a particular period. With the details of payments it can be
checked that whether the payments are of reasonable amount or not. If the
expanses are unreasonably high he may take steps to control them. An
entrepreneur who regularly checks his cash and bank balances would never
face problems like dishonor of cheques or cash crisis etc. Entrepreneur, who
doesn’t distinguish between his revenue and profits, may spend all his receipts
for his personal purposes subsequently resulting in deficiency of cash for
business purposes and lead to cash crisis.
After going through this lesson you should be able to
Explain the meaning of Cash Book, Pass Book, and Petty Cash Book.
Discuss the types of cash book.
Enter the transactions in Cash Book.
Explain the meaning, need and importance of bank reconciliation
Discuss the causes for difference between the balances of Pass Book
and Cash Book.
Prepare bank re