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for each payment transaction, the details that need to be recorded are the date paid, the details of the payee, cheque number and amount.each payment should then be analyised under the appropriate expenses heading.the purpose of accounts is to provide an historic record of the practice’s financial performance.provided that they are prepared promptly after the practice’s year end, they will be a useful tool in making financial decisions.

at the end of the month a transfer from the bank would be made so that the money in the petty cash tin was the same at the start of the month. cash in tin at start of month £ 100 cash expenses £ (60) balance of cash in tin £ 40 cash drawn from bank for next month £ 60 cash in tin at start of next month £100 therefore whenever you counted the petty cash, the cash plus expense receipts will always equal £100.bookkeeping bookkeeping is the basic recording of the business transactions. the right hand side of the cashbook is used to record the income and the left hand side records the expenses.these transactions will usually be recorded in the cashbook and petty cash book. in both instances there will be a total column with several columns to the right, which are used to analyse the income or expenses into categories.you should contact the pct to find out what the income is for, so that it can be correctly recorded in the cashbook.if it is not queried at the time the income is received, it is likely that your accountant will query it with you, when preparing the end of year accounts.

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