Accounting Teacher -English Medium

Very important for Accounting students

Chapter: Cash Book

Advantages of cash book:-

*The cash book did uses the number of entries in the ledger.
*One person can be put in charts of the book, thus increasing efficiency.
*Reference to the cash and bank accounts is made easier with the a separate book.

Contra entries :-
i)when money from the bank is taken out for office use.
ii) when money from the office is paid into the bank.

Cash discount :-
a cash discount is a deduction from the amount due.it is given to encourage prompt payment of debts.

Discount allowed :-
the cash discount given by the trader to his customer for payment in quickly from the due date.

Discount received :-
the cash discount received by the trader from his supplier for paying in quickly from the due date.
Call for home tutoring
Nazrul Sir-Sr.Accounting teacher(O&A level)
Cell :01537 633780

Capital income-is derived from selling non current asset or money invested in the business by the owners

Revenue expenditure-is money spent on the everyday running cost of a business.

Capital expenditure -is money spent on the acquisition of non current assets or their improvement.