CHAPTER 5 – RECORDING ACTUAL INCOME AND EXPENDITURE
Note that a transaction value is recorded in the Total column and in its relevant analysis column. For example, the €500 wages received by Sarah on 15 October is recorded in the Total column and in the Wages column on the debit side of the cash book.
Cash transactions only A
Go to page 36 of your Activities and Accounts Book to complete analysed cash books showing cash transactions only.
Bank Transactions Only
Often, when a household receives wages and pays bills, no cash transactions take place. Instead, payments are received and made electronically, directly to and from a bank account.
Bank transactions are recorded in an analysed cash book in exactly the same way as cash transactions.
Bank transactions only A
Go to page 40 of your Activities and Accounts Book to complete analysed cash books showing bank transactions only.
RECORDING CASH AND BANK TRANSACTIONS
In reality, most people make and receive payments using a combination of cash and bank transactions.
Recognising cash and bank transactions A
Go to page 45 of your Activities and Accounts Book to identify cash and bank transactions.
Read the text below and answer the questions that follow. Sam works as research scientist. His wages are paid into his bank account fortnightly.
He drives to work, passing through one toll road, which costs €4.80 per day. He likes to have the exact change ready as it saves him time.
Before work each day, Sam pops into a nearby café and purchases a coffee. He uses the change in his wallet to pay.
Sam had to stop for petrol on the way home yesterday. He paid for the petrol at the pump using his debit card.
