A cash book generally records all types of financial transactions and it is an important bookkeeping document. Here is the procedure for maintaining a cash book in an NGO:
Maintaining Cash Book
A cashbook is a primary book of entry that is prepared after a voucher for a particular transaction. The cash book records all transactions in which cash /bank receipts are involved.
- A double column cashbook that can act as a bankbook or a single column cashbook (in case a bank book is maintained separately) has to be maintained.
- No cutting or alterations should be made in the cashbook. Correction fluid should also not be used. Any mistake should be corrected by passing a rectification entry.
- Cashbooks have to be written regularly (as and when a transaction takes place). All cash balances should be inked up regularly.
- The Cashbook has to be tallied checked and signed by the competent authority or any other appropriate authority every month.
- Cashbooks should always remain at the office.
