The cash book of a
business is the record of how much cash the business believes that it has in
the bank. In the same way, you might keep a private record of how much money
you think you have in your own personal account at your bank. Perhaps by making
a note in your cheque book of income received and the cheque you write. If you
do keep such a record, you will probably agree such a record, you will probably
agree that when your bank sends you a bank statement as being the balance in
your account is rarely exactly the amount that you have calculated for yourself
as being your current balance.
business is the record of how much cash the business believes that it has in
the bank. In the same way, you might keep a private record of how much money
you think you have in your own personal account at your bank. Perhaps by making
a note in your cheque book of income received and the cheque you write. If you
do keep such a record, you will probably agree such a record, you will probably
agree that when your bank sends you a bank statement as being the balance in
your account is rarely exactly the amount that you have calculated for yourself
as being your current balance.