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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:
“8. 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) 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.
b) 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.
c) Cashbooks have to be written regularly (as and when a transaction takes place). All cash balances should be inked up regularly.
d) The Cashbook has to be tallied checked and signed by the competent authority or any other appropriate authority every month.
e) Cashbooks should always remain at the office.”
