Household income and expenditure

Income

Money in

Expenditure

Money out

Why do we need to do this?

• Keep track of spending and earning

• help to accurately budget

• Businesses HAVE to record income and expenditure.

• House holds do not.

Receipts

Useful for keeping tabs on expenditure.

Bank statements

Are useful for keeping track of income and expenditure

Cash

Hard to track. Must be accounted for ASAP

The Rules

Debit side

Side for money in

Credit side

Side for money out

Transactions

Occurs whenever money is moved in or out

Entries

Each transaction requires a separate entry in a cash book.