what is meant by amended cash book ?
Dear Student,
Business organisation keeps a record of their Cash and Bank transactions in a cash book.This cash book serve the purpose of cash account and bank account, it shows ending balance of cash balance and balance in bank account.
Once the organisation balance it cash book, they check it's details with transaction recorded by Bank in pass book/Bank statement. Some time there is situation in which there is difference between pass book/bank statement balance and cash book balance.
After detailed study of the reason of difference between pass book balance and cash book balance, organisation come to know about the transactions which are recorded into the pass book/bank statement but due to lack of information not booked into the cash book.For recording these transaction organisation prepares amended cash book.After that, with adjusted/amended cash book balance Bank reconciliation statement is prepared.
Regards
Business organisation keeps a record of their Cash and Bank transactions in a cash book.This cash book serve the purpose of cash account and bank account, it shows ending balance of cash balance and balance in bank account.
Once the organisation balance it cash book, they check it's details with transaction recorded by Bank in pass book/Bank statement. Some time there is situation in which there is difference between pass book/bank statement balance and cash book balance.
After detailed study of the reason of difference between pass book balance and cash book balance, organisation come to know about the transactions which are recorded into the pass book/bank statement but due to lack of information not booked into the cash book.For recording these transaction organisation prepares amended cash book.After that, with adjusted/amended cash book balance Bank reconciliation statement is prepared.
Regards