.



Cash Journal

Introduction

Cash transactions are recorded in what is called a Cash Journal, in bookkeeping terms. The purpose is:

  • Show to Homeowners Association Council where the money received in cash, from quotas or repayment, was applied.
  • Keep track the money spend in each category (cleaning, elevators, decoration,...) also when payment is made in cash, elements that are necessary to present to the Council at the end of the accounting period.

Material

To bookkeeping this transaction you need an worksheet, either a simple worksheet paper or the spreadsheet provided by [portal:portalname].

Also you need some place to keep the money, like a box. Its advisable that the cash money of the Condominium doesn't mix width you money. If it it does, you will not be able to confront the Cash Journal balance with the amount in Cash belonging to the Condominium, contained in the box. Confronting the two values is a good way to detect errors.

Type of Operations

  • Opening
    On day 1 of January, the Cash belonging to the Condominium should be exactly the value of the Cash Journal that was transmitted by the previous administration on the home-owners assembly. This is the first operation recorded in this Journal, and the only one of this type.
  • Payments in Cash
    Buying lamp's or detergent's in cash, for example, should be recorded as Debits (negative value). Quota or Repayments in cash are record as Credits(positive value).
  • Electronic Transfers
    Transferring money from Deposit Account (Withdraw) to Cash should be registry as Credits (income) on Cash Journal. On the Deposit Account Journal should be record as the Debit (outcome).
    In other hand deposits in Cash should be recorded as Debits(outcome) in Cash Journal and as Credits in Deposit Account Journal. In the below example, one Cash reinforcement is made by withdraw 200 Dollars from the Bank Account, at day 2-5-2008.
  • Receiving in Cash
    Quota payments, or repayments in Cash are also record in Cash Journal, as credits.
  • Closing
    The date of Closing the Cash Journal as to be the same as the day that ends the Accounting Period. It should be at 31 of December. The total cash belonging to the homeowners, stored in the box, should be exactly the balance of the Journal at day 31 of December.

Example of a Cash Journal


Date Description Value Balance Type Document Number
01/01/08 Inicial Balance $120 Opening
01/10/08 Fraction D quota $420 $540 Fraction D 23
01/30/08 Elevators Company Repayment -$325 $215 Extraordinary BI14
02/04/08 Detergent -$40 $175 Cleaning BI18
02/05/08 Cash Reinforcement $200 $375 BK53
12/31/08 Close Balance $352 Closing