Personal cash book

Cash management tool for individuals

1. Asghar Khan
Lecturer in Commerce Lecturer in Commerce
GCMS Thana

2. Personal cash Book
CashbookisusedtorecordCash
receiptsandpayments,includingreceiptsandpayments,including
bankdepositsandwithdrawals.
ThetermpersonalcashBookrefers
toadocumentoranAccountthat
outlinesanindividual'scashflow.

3. Personal cash Book give you a clear picture of your cash
inflow (money you earn) and your cash outflow
(money you spend).
Inflow of Cash Outflow of Cash
Increase in Cash Decrease in Cash

4. You mustrecognize where your
money goes.
Month opening Month Ending

5. A Survey shows that 65% of Americans Have No A Survey shows that 65% of Americans Have No
Idea, How Much They Spent Last Month.

6. The 50–30–20 Budget Rule
The 50–30–20 Rule The 50–30–20 Rule
•Financial experts recommendto
saving at least 20% from your net
incomeeach month.
•Next, allocate50% of your net
income to necessities(such as rent,
utilities, transportation or
income to necessities(such as rent,
utilities, transportation or
groceries). Spending more than
50% might mean that your living
standard is higher than you can
afford.
•You can use the remaining30% for
personal expenses(your wants) It’s
your new clothes, Purchase of
Luxury products, entertainment or
travels that fall into this category.

7. Cash Transactions of Mr. Kamal for the
First Week of March 2021.
March 1: Opening Balance of Cash Rs. 10,000 and Bank Balance Rs. 30,000.•March 1: Opening Balance of Cash Rs. 10,000 and Bank Balance Rs. 30,000.
•March 1: Salary for the Month of February Credited by Bank Rs. 80,000.
•March 1: Daily Expenses Rs. 500.
•March 2: Daily Expenses Rs. 800.
•March 3: Cash withdrawn-form Bank Rs. 50,000.
•March 3: Bank charges Rs. 50.
•March 3: Daily Expenses Rs. 600.•March 3: Daily Expenses Rs. 600.
•March 4: Electricity Exp. Rs. 1,200.
•March 4: Medicine Expenses Rs. 1,500.
•March 4: Mr. Kamal has a son, Mr. Jamal, who is a Govt. employee and
contributes Rs. 20,000 every month to his father.
•March 5: Mr. Kamal has three shops. He received Shops’ rent Rs. 3000
for the month.
•March 5: Daily Expenses Rs. 1,000.
•March 6: Daily Expenses Rs. 700.
•March 7: Daily Expenses Rs. 1,500.

8. Personal Cash book
For the month of March, 2021
ﺎﯾ ﮏﻧﯾﺑشﯾﮐ ہﻓﺎﺿا ںﯾﻣ ﺎﯾ ﮏﻧﯾﺑشﯾﮐ ﯽﻣﮐ ںﯾﻣ
Date DescriptionCashBankDateDescriptionCashBank
1Opening Balance
31 Total 31 Total
1 Apr.

9. Personal cash Book
for the First Week of March 2021
(Increase in Cash Or Bank)(Decrease in Cash Or Bank)
Date Description CashBankDate Description CashBank
Mar.1
Mar.1
Mar.3
Mar.4
Opening Balance
Salary
Cashwithdrawn-
form Bank
Jamal (son)
10,00010,000
50,000
20,000
30,00030,000
80,000
Mar.1
Mar.2
Mar.3
Mar.3
Daily Expenses
Daily Expenses
Cashwithdrawn-
form Bank
Bank charges
500
800
50,000
50Mar.4
Mar.5
Jamal (son)
Rent from Shops
20,000
3000
Mar.3
Mar.3
Mar.4
Mar.5
Mar.5
Mar.6
Mar.7
Mar.7
Bank charges
Daily Expenses
Electricity Exp.
Medicine Exp.
Daily Expenses
Daily Expenses
Daily Expenses
Balancingfigure
600
1200
1500
1000
700
1500
75,20075,200
50
59,95059,950
Mar.7
Mar.8
Mar.8
Total
Opening Balance
SuspenseInc. A/C
83,000
75,20075,200
00
110,000
59,95059,950
Mar.7
Mar.8
Total
Suspenseexp.A/C
83,000
0
110,000

10. Example of Balancing Figure Calculation
Total cash (Increase side): 83000.
Less:Cash paid during the month: 7800.Less:Cash paid during the month: 7800.
= :Balancing Figure: 75,200.
Difference

11. Example of Suspense A/C
Balancing figure: 75,200.
Less: Actual cash counted:75,200.
= : Suspenseaccount: Zero= : Suspenseaccount: Zero

12. Example of Suspense Expenses A/C
Balancing figure: 75,200.
Less: Actual cash counted:75,100.
= : SuspenseExpenses account: 100.= : SuspenseExpenses account: 100.
It means that you paid more than actual expenses
or you lost money.

13. Example of Suspense Income A/C
Balancing figure: 75,200.
Less: Actual cash counted:75,300.
= : SuspenseIncome account: 100.= : SuspenseIncome account: 100.
It means that you paid less than actual expenses.

14. Advantages OF Preparing Personal cash Book
1.Chronological record of Cash and Bank related transactions.
2.Cashand bank balances can be checked at any point of time.
3.Help us to control misuse of cash transaction.
4.Future planning becomes easier.4.Future planning becomes easier.
5.No special Knowledge is required to prepare it.

15. Conclusion
You can't manageyour cash properly,
until you record it properly.
Thank You