What account 5010 is for
This sub-account records the soum cash kept in the organisation's cash desk. Under paragraph 222 of the Instructions to NAS No. 21, information on the cash on hand and its movement is collected in two accounts: 5010 "Cash in national currency" and 5020 "Cash in foreign currency".
Put simply: soums in the cash desk go to 5010, foreign currency in the cash desk goes to 5020.
The same paragraph mentions one more option: certain organisations (transport, communications) may, if needed, open separate cash accounts such as "Organisation's cash desk" and "Operating cash desk".
An asset account: what that means
In the chart of accounts, account 5000 has type "A" (asset). Paragraph 3 of NAS No. 21 says that in an asset account the balance and increases of resources are shown on the debit side and decreases on the credit side. Applied to the cash desk:
- money comes into the cash desk: 5010 is debited;
- money is paid out of the cash desk: 5010 is credited;
- the balance is a debit balance and shows how many soums are in the cash desk right now.
What goes to the debit side
Under paragraph 222, the debit side shows money received into the organisation's cash desk. Four debit examples from the table in paragraph 223: proceeds from cash sales, money withdrawn from the bank into the cash desk, an unused advance returned by an accountable person, and a founder's cash contribution towards their share in the charter capital. Their journal entries are listed below in the "Main journal entries" table.
What goes to the credit side
Under the same paragraph, the credit side records money paid out of the cash desk and cash in excess of the limit handed over to the bank. Three credit examples from the table in paragraph 223: paying wages to employees, giving money to an accountable person, and handing cash over to the bank.
5010 or 5020: which one to use
| Cash in the cash desk | Sub-account |
|---|---|
| Soums | 5010 "Cash in national currency" |
| Foreign currency | 5020 "Cash in foreign currency" |
Money in the bank settlement account is not recorded in the cash desk accounts but in 5110 "Settlement account" (Instructions, para. 224).
Points to watch
- Cash handed to a cash collector. It has left the cash desk but has not yet reached the bank. Under paragraph 238, such money is recorded in 5710 "Cash (transfers) in transit": first Dr 5710 Cr 5010 (para. 239, row 1), and once the money reaches the bank Dr 5110 Cr 5710 (para. 239, row 7).
- Returned advance. When an advance is issued, under paragraph 180 the account for advances issued to employees (group 4200) is debited and the cash account (5010 or 5020) is credited. If an accountable person returns unused money to the cash desk, the money comes back into the cash desk: Dr 5010, 5020 Cr 4220-4290 (para. 223, row 5).
- Cash shortage. If a stock-take shows less cash than recorded, row 20 of the table in paragraph 223 gives: Dr 4730 "Employees' debt for compensation of material damage", Cr 5010, 5020.
- Credit balance (practical tip). 5010 is an asset account, so under paragraph 3 its balance is a debit balance; besides, you cannot pay out more cash than the cash desk holds. So if the books show a credit balance on 5010, it signals an error: a receipt may have been left out or a payment recorded twice, so check the entries again.
Main journal entries 9
Debit and credit are as in the model table of Appendix 2 to NAS No. 21. The transaction text briefly restates the table row.
| Transaction | Debit | Credit | Source |
|---|---|---|---|
| Proceeds from selling products, work and services for cash received into the cash desk | 5010, 5020 | 9010–9030 | NAS No. 21, para. 223, row 2 |
| Money withdrawn from the settlement account into the cash desk to pay wages, benefits, bonuses and similar payments | 5010 | 5110 | NAS No. 21, para. 226, row 13 |
| An accountable person returned an unused advance to the cash desk | 5010, 5020 | 4220–4290 | NAS No. 21, para. 223, row 5 |
| A founder paid in their share of the charter capital in cash | 5010, 5020 | 4610 | NAS No. 21, para. 223, row 7 |
| Accrued wages and other payments (bonuses and the like) paid out of the cash desk | 6710 | 5010, 5020 | NAS No. 21, para. 223, row 14 |
| Money given to an accountable person from the cash desk | 4220–4290 | 5010, 5020 | NAS No. 21, para. 223, row 15 |
| Cash from the cash desk deposited into the bank settlement account | 5110 | 5010 | NAS No. 21, para. 226, row 4 |
| Cash from the cash desk handed to a cash collector for crediting to the settlement account | 5710 | 5010, 5020 | NAS No. 21, para. 239, row 1 |
| A cash shortage found in the cash desk during a stock-take | 4730 | 5010, 5020 | NAS No. 21, para. 223, row 20 |
Example
At the start of the day the cash desk of "Yashil vodiy" LLC (a fictional company) held 800,000 soums. During the day the following happened:
| No. | Transaction | Dr | Cr | Amount, soums |
|---|---|---|---|---|
| 1 | Money withdrawn from the bank to pay wages | 5010 | 5110 | 12,000,000 |
| 2 | Wages paid to employees | 6710 | 5010 | 12,000,000 |
| 3 | Advance for general business expenses given to buyer Karimov | 4230 | 5010 | 600,000 |
| 4 | Karimov returned the unused money | 5010 | 4230 | 150,000 |
| 5 | A founder paid in cash towards their share in the charter capital | 5010 | 4610 | 2,000,000 |
| 6 | At the end of the day the cash was deposited at the bank | 5110 | 5010 | 2,000,000 |
The 450,000 soums Karimov spent do not concern the cash desk: they are recorded in other accounts depending on the type of expense (Instructions, para. 180).
Account 5010:
| Item | Amount, soums |
|---|---|
| Opening balance | 800,000 |
| Debit turnover (1, 4, 5) | 14,150,000 |
| Credit turnover (2, 3, 6) | 14,600,000 |
| Closing balance | 350,000 |
Check: 800,000 + 14,150,000 − 14,600,000 = 350,000 soums. A cash count at the end of the day should also give 350,000 soums. If there is a difference, compare the day's receipt and payment documents again (practical tip; example prepared by the author).