The Date - This is the date of the transaction which you can get off the accounting source documents.
Description - A brief description of the transaction. You can put whatever information you feel necessary, but don’t overdo it!
Reference - You can basically choose whatever reference will help you identify the
transaction. Some people use the invoice numbers. The reference can be
written somewhere on the transaction document, if it’s not on there
already - like an invoice number. This is a good way of cross
referencing the transaction between the cash book and the document.
Income/Expenses - Simply insert the value of the transaction into the appropriate
column... is it money coming in to the business or money going out of
the business? You could change the headings to ‘Money In’ and ‘Money
Out’ if you prefer.
Bank - This is a running balance column that changes each time a transaction
is entered. Add the income, subtract the expenses. Notice on 01 Apr
there is an opening balance. This is the balance taken from the last day
in March and brought forward (b/f) to Apr. It can also be called b/d -
Okay! Now you’ve got the hang of that, let’s discuss the bottom section of the spreadsheet...