"Dinesh Chhole Bhatoore wala" is a famous shop for selling tasty Chhole Bhatoore. Daily cash collection of the shop is more than ₹ 20,000. Dinesh runs the brand under a Company with name of DCB Pvt Ltd. To comply with va

CS Executive · Setting up of Business Entities and Closure · PYQS · December 2024
"Dinesh Chhole Bhatoore wala" is a famous shop for selling tasty Chhole Bhatoore. Daily cash collection of the shop is more than ₹ 20,000. Dinesh runs the brand under a Company with name of DCB Pvt Ltd. To comply with various laws, management of the company appoints you as compliance officer. Being Compliance Officer, how will you take care of following records: (ii) Cash Records.

Answer & Explanation:

Despite all advances in banking technology and facilities, businesses must still undertake a large number of transactions in cash. Due to the very sensitive nature of cash holdings and transactions, it is important from a business as well as reporting perspective to have a tight handle on the cash in circulation within the enterprise. To be able to actively ascertain the exact amount of cash available, a business must maintain two principal documents: Cash collection register, to record and reconcile all collections made by the business in cash, and; Day books / Cash book to map the inward and outward movement of cash from the business.

Topics: Business Records & Compliance

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