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, or the initials of the type of payment transaction (like DC for Direct Credit). 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 and payment between the cashbook 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 -
You can find out more about the cashbook format and design your own one if you prefer to suit your requirements.
Okay! Now you’ve got the hang of that, let’s discuss the bottom section of the spreadsheet...