CHAPTER 5 HOUSEHOLD ACCOUNTS: THE ANALYSED CASH BOOK 21/05/2019 This is the Title Slide R. DELANEY

The Analysed Cash Book An account is a record of transactions. The cash book is used to record all money received and all money paid out. The debit side of the cash book is used to record money received. The credit side of the cash book is used to record money paid out. R. Delaney

The Analysed Cash Book Opening cash is the amount of cash a person or family has at the start of a period. Closing cash is the amount of cash a person or family has at the end of a period. This is the total of the debit side cash column less the total of the credit side cash column. Contra entries are transactions that require a debit and a credit entry in the same account for any one transaction. R. Delaney

Example: Q11: Page 41 Debit Side Credit Side Cash Wages F Cash Car € € Date Details F Cash Wages Date Details F Cash Heating Car Groceries 2010 € € 2010 € € € € 01-Mar Wages 800 800 04-Mar Petrol 40 40 08-Mar Wages 800 800 06-Mar Groceries 120 120 05-Mar Heating oil 600 600 09-Mar Groceries 100 100 Balance = the total of the debit side cash column less the total of the credit side cash column, i.e. €1,600 less €965 = €635 12-Mar Petrol 35 35 13-Mar Bottled gas 70 70 31-Mar Balance c/d 635 1,600 1,600 1,600 670 75 220 01-Apr Bal b/d 670 R. Delaney