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Prepare Cash Book Print E-mail

To prepare a cash book, use the following steps:

1. Download the entity bank statements from online banking. Bank statements usually download as comma separated files so save the file type as an excel workbook.

2. Take out unnecessary columns that you are not going to use.

3. Take out any blank lines between the headers and content so that you have a continuous body of text.

4. Highlight the headers, which should now be in row A, and select the filter option.

5. Filter the data by selecting one type of transaction at a time. For example bank charges may be designated a code such as 'bnkchg' on the statement.

6. Now there are two options:

(a) Allocate each type of transaction to a cost code in the first blank column available after the block of text by giving it a name in that row. For example, next to a row with bank charges in, type "Bank charges" in the first blank cell of that row. Now copy this description to all the rows with bank charges in them. Give this column a header and add the filter option to it. Once all the transactions have been allocated, highlight the block of text and create a pivot table by selecting "Pivot Table" from the "Insert" menu. Select the Transaction type as the Row header and the gross amount of the payment as the "Sum of amount" value. This will form a summary of all the bank transactions in a trial balance format.

(b) Instead of allocating a description to each row, create new columns immediately after the block of text to designate each amount to a column, such as 'bank charges'. Add up the total of each new column and in a second tab, list the columns and their totals to form the base Trial Balance.

Cash Book 

Once the cash book has been created, you are ready for the creation of the extended trial balance.  

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