Cash Account
Introduction:When you have a lot of transactions it can be easy to forget when and where you have received and spent your money. So we do a cash account every month to keep record of your transactions. This is called 'bookkeeping' or 'accounting'.
How to record the households income and expenditure... Important steps: 1.Draw a T account like shown at the beginning of the video 2.Add all your titles before you begin to save confusion later on. |
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Cash Account Revision Video
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Lets Get Started..After you have all the 'T' accounts and the headings written out your ready to begin your cash account. You just need to follow the next few steps:
1. Your very first transaction should always be your balance from the month before. You put this on the debit side. 2. Now you have to put in your income and expenditure, for example for income it could be wages and for expenditure it could be mortgage or petrol. 3. All the income goes on the debit side along with the balance, and all the expenditure on the credit side. 4. To balance check out the video to the left. |
Quiz Time!
1. What letter does the account look like?
a) T
b) S
c) V
2. What is cash account mainly used for?
a) To keep record of your expeniture.
b) To keep record of your income and expenditure.
c) To keep record of your income.
3. What should be the first input to the account?
a) Balance from the previous month.
b) Balance expected for this month.
c) Balance expected for next month.
4. What side does the balance go on?
a) The debit side.
b) The credit side.
c) Both sides.
5. What side do we put the income on?
a) The credit side.
b) Both sides.
c) The debit side.
6. What side does the expenditure go on?
a) Both sides.
b) The credit side.
c) The debit side.
7. What is an example of income?
a) Wages.
b) Petrol
c) Mortgage
8. What is an example of expenditure?
a) Child benefit.
b) Groceries.
c) Salary
9. What side does the bigger balance go on?
a) Credit side.
b) debit side.
c) both sides.
10. How often do you do a cash account?
a) Yearly.
b) Weekly.
c) Monthly.
a) T
b) S
c) V
2. What is cash account mainly used for?
a) To keep record of your expeniture.
b) To keep record of your income and expenditure.
c) To keep record of your income.
3. What should be the first input to the account?
a) Balance from the previous month.
b) Balance expected for this month.
c) Balance expected for next month.
4. What side does the balance go on?
a) The debit side.
b) The credit side.
c) Both sides.
5. What side do we put the income on?
a) The credit side.
b) Both sides.
c) The debit side.
6. What side does the expenditure go on?
a) Both sides.
b) The credit side.
c) The debit side.
7. What is an example of income?
a) Wages.
b) Petrol
c) Mortgage
8. What is an example of expenditure?
a) Child benefit.
b) Groceries.
c) Salary
9. What side does the bigger balance go on?
a) Credit side.
b) debit side.
c) both sides.
10. How often do you do a cash account?
a) Yearly.
b) Weekly.
c) Monthly.