The bank's cash administration

Posted by Imam Larh on Wednesday, 14 February 2018


Understanding Cash :

Cash is current assets which include paper money, coins, and securities that have properties such as money, that is acceptable as a means of payment or Exchange. Deposits in the bank that can be used at any time is also the cash.

1. Components of The cash

The components include the cash assets are used as a means of payment or media of Exchange when required, which consists of:

  • Cash (in the form of paper or metal).
  • Cash deposits in banks (in the form of savings or current account).
  • Check received from the other party as payment from the other party.
  • Checks in travel, i.e. a check issued by a bank to serve clients who travel a long way.
  • Cashier's cheque, that is created and signed by a bank and can be pulled through the bank itself. Thus, the cashier's check is a warrant from a bank to the bank itself to make payments to the other party.
  • Money order, including the cash due to its nature that can immediately be used as cash.

2. The Component instead of cash

While the components that are not included in the cash, among other things:
  • Fixed deposits are deposits that exist dibank that they were taken in accordance with the time period, so it can't be taken away at any time.
  • Securities (stocks and bonds) issued another company.
  • Written orders are charged money orders not conditional of towing to any interested to pay certain money sejumblah.
  • Check the retreat is a check of its use in accordance with the due date.
  • Stamps and postage labels, not including the cash not because it is not accepted as a deposit to the bank and could not be used as means of payment.
Cash Management

In accounting, the company does not rely solely on outside parties (in this case is the banks) to perform the recording of transactions. However, the Corporation conducts accounting manually. Both the organizing is done to ensure the cash management done right. The cash management needed to do the means, as follows.

  1. The procedure established company, good for the cash receipt transactions or accounts payable.
  2. The means (tools and materials) that are required include:
  • Evidence of transactions, both for the receipt or expenditure of cash.
  • Receipt and Journal Book book journal accounts payable.
  • Journal petty cash Book.
  • Office stationery, such as paper, pencils, ballpoint pen, a ruler, and eraser.
  • Calculating Tools, both manual and electronic.
  • Bank account statements from the bank.

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