2. What is an analysed cash book? When we were preparing household budgets in Chapter 11, we showed the total
amount we expected to receive in income and the total amount we expected to spend on items such as groceries, mortgage and car expenses. If we only use the cash and bank accounts to monitor our spending, then it can be difficult to see if we are keeping to our budget.
However, if we record all our financial transactions in an analysed cash book then we can easily see all of our regular, irregular and discretionary spending.
Use Record Book 1 to prepare an Analysed Cash Book
The Date column records the date of the transaction.
Analysed Cash Book A/C
Date Details
The Details column records a description of the transaction.
Cr side (money paid out)
F Cash Bank €
€ 1 2 3 € € €
The Bank column is used to record any money that is received into our bank account (on the debit side) or any amount paid out of our bank account (on the credit side).
LO 1.2 1.12 1.13
The Folio (F) column is for any reference numbers that could be useful.
The Cash column is used to record any cash (notes and coins) that was either received (on the debit side) or paid out in cash (on the credit side).
The columns marked 1 to 3 are known as the analysis columns. These are used to keep a record of your most important and regular items of income and expenditure. You may use additional columns depending on your needs.
