The cash book is balanced at the end
of a given period by inserting the excess of the debit on the credit side as
“by balance carried down” to make both sides agree. The balance is then shown
on the debit side by “to balance brought down” to start the next period. As one
cannot pay more than what he actually receives, the cash book recording cash
only can never show a debit balance.
of a given period by inserting the excess of the debit on the credit side as
“by balance carried down” to make both sides agree. The balance is then shown
on the debit side by “to balance brought down” to start the next period. As one
cannot pay more than what he actually receives, the cash book recording cash
only can never show a debit balance.
Format of a Cash Book
The following is the simple format
of a cash book.
of a cash book.
