Analysed Cash Book For Households

Question 1

What is an analysed cash book

T a c b I u t r a m r a s b a h. I I c a c b b a i o i a e a r u s h

Answer 1

The analysed cash book is used to record all money received and spent by a household. It is called an analysed cash book because all items of income and expenditure are recorded under suitable headings.

Question 2

Sources of Information for an Analysed Cash Book

C I w o p
B s
R
R a t

Answer 2

• Cash in your wallet / purse
• Bank statements
• Receipts
• Revolut account transactions

Question 3

Analysed Cash Book -The Rules

T a c b I d I a d DR s a a c CR s

Answer 3

> The analysed cash book is divided into a debit (DR) side and a credit (CR) side.

Question 4

What is debit

D I m r o i/ m c i i i o t L h s o t c b

Answer 4

> Debit is money received (income / money coming in) - left hand side of cash book

Question 5

What is credit

Cr i m s o e/p i i o t r h s o t c b

Answer 5

> Credit is money spent (expenditure / payments) - right hand side of cash book

Question 6

Cash book rule

Dr: m c i/ m r

Cr: m g o/ m s

Answer 6

Dr: money coming in/ money received

Cr: money going out/ money spent

Question 7

Balancing and totalling accounts

C a a u t w o h m m w h a t e o t d, w, m ect

W w b o a c b w a j w o t d b t a o m w r a t a o m w s

T b i t d b t a o m o t d a c s o a a

Answer 7

cash account allows us to work out how much money we have at the end of the day, week, month etc.

• When we balance our analysed cash book we are just working out the difference between the amount of money we received and the amount of money we spent.

The balance is the difference between the amount of money on the debit and credit sides of an account.

Question 8

What is a Closing balance = balance CD

A a t e o a w, m ect h

Answer 8

(amount at the end of a week, month etc)

Question 9

What is an opening balance

A a t s o a w, m ect

Answer 9

(amount at the start of a week, month etc)

Question 10

What is a bank overdraft

A o L y b m t u r a b t m m o t y h i t a a a

Answer 10

An overdraft lets u borrow money through ur current account by taking more money out then u have in the account

Question 11

Benefits of Keeping an Analysed Cash Book

1. Y h a r o a i a e
2. Y c c i a y b t m s y a o t w y s
3. Y c s w y m b o
4. Y c c i t y b s a m s t a n m

Answer 11

1. You have a record of all income and expenditure

2.You can compare it against your budget to make sure you are on track with your spending

3.You can see where you might be overspending

4.You can compare it to your bank statements and make sure there are no mistakes