Analysed Cashbook

Question 1

What is a cashbooks

Answer 1

A cashbook is used to record all money recieved and spent

Question 2

What put on the debit side of the T account?

Answer 2

The money we recieve

Question 3

What is put on the credit side of the T account?

Answer 3

The money we spent

Question 4

What is an example of something that would be on the debit side?

Answer 4

Wages, child benefit and pension

Question 5

What are examples of things which would be on the credit side?

Answer 5

Groceries, bills and cinema

Question 6

What is balancing an account

Answer 6

Balancing an account is calculating the difference between money recieved and money spent

Question 7

What is the closing balance called?

Answer 7

Balance carried down or (c/d)

Question 8

What is the opening balance for the next month called

Answer 8

The balance brought down or (b/d)

Question 9

What is the first step in balancing an account

Answer 9

What side of the account is bigger? (Add up in rough work)

Question 10

What is the second step in balancing an account

Answer 10

What is the balance (bigger side minus the smaller side = balance)

Question 11

What is the third step in balancing an account

Answer 11

Make both sides equal ( add in the c/d balance to the smaller side)

Question 12

What is the fourth step in balancing an account

Answer 12

Bring the balance back to the bigger side under the total ( this is b/d )

Question 13

What are reasons to prepare an analysed cashbook?

Answer 13

1. To have a record of income and expenditure
2. To compare record with budget to make sure you are on track
3. To see if you are overspending
4. To compare with your bank statement to make sure no mistakes have been made