What account 5020 is for
An organisation's cash desk can hold cash other than soums: for example, a foreign customer paid in cash in dollars. That is why the cash group (5000) is split into two accounts: soum cash is in 5010 and foreign-currency cash is in 5020 (para. 222).
This is not a foreign currency account at a bank. Currency in a bank account is kept in 5210 or 5220. Account 5020 is only for cash physically in the cash desk, in hand.
Account type and sub-accounts
Group 5000 has type "A" (asset). In an asset account the balance and increases are shown on the debit side and decreases on the credit side (NAS No. 21, para. 3). Account 5020 has no sub-accounts of its own. Paragraph 222 says something special about transport and communications organisations: where needed, they may also open accounts such as "Organisation's cash desk" and "Operating cash desk".
What goes to the debit side
The debit shows money coming into the cash desk (para. 222). For example: goods or services were sold for cash in foreign currency (para. 223, row 2), an accountable person returned an unused advance (row 5), currency was withdrawn from a bank account into the cash desk (para. 229, row 12).
What goes to the credit side
The credit shows money leaving the cash desk: payments, and the handover of cash above the limit to the bank (para. 222). For example: an advance was issued to an accountable person (para. 223, row 15), currency from the cash desk was deposited at the bank (para. 229, row 3), a shortage was found in a stock-take (para. 223, row 20).
The official table: paragraph 223, with 5010 and 5020
Paragraph 223 gives a single table for both sub-accounts (5010 and 5020), 22 rows in all. Here they all are, in full:
| No. | Transaction | Dr | Cr |
|---|---|---|---|
| 1 | Interest on goods sold on credit received in cash (in trading organisations) | 5010, 5020 | 4830 |
| 2 | Products, work and services sold for cash | 5010, 5020 | 9010-9030 |
| 3 | Proceeds from the sale of fixed assets and other assets received in cash | 5010, 5020 | 9210-9220 |
| 4 | Money came into the cash desk from bank accounts (for wages, benefits, bonuses) | 5010, 5020 | 5110-5530 |
| 5 | An accountable person returned an unused advance | 5010, 5020 | 4220-4290 |
| 6 | Issue income received from selling shares above par value | 5010, 5020 | 8410 |
| 7 | Founders paid cash into the charter capital | 5010, 5020 | 4610 |
| 8 | Debt received from apartment tenants | 5010, 5020 | 4890 |
| 9 | Payments for utilities, communications and others received | 5010, 5020 | 4890 |
| 10 | A loan to lend to workers for housing construction received in cash | 5010, 5020 | 6810, 7810 |
| 11 | Cash handed over from the cash desk to the settlement account at the bank | 5110-5530 | 5010, 5020 |
| 12 | The organisation's own shares bought back from shareholders | 8610, 8620 | 5010, 5020 |
| 13 | Costs of buying securities (brokers' services) paid | 0610, 5810 | 5010, 5020 |
| 14 | Accrued wages and other payments paid out | 6710 | 5010, 5020 |
| 15 | Accountable amounts issued | 4220-4290 | 5010, 5020 |
| 16 | A loan issued to employees | 4720 | 5010, 5020 |
| 17 | Various amounts issued (on payment sheets and others) | 6990 | 5010, 5020 |
| 18 | Cash paid on behalf of separated divisions | 4110 | 5010, 5020 |
| 19 | Non-reimbursable expenses connected with natural disasters paid | 9720 | 5010, 5020 |
| 20 | A shortage of cash found in a stock-take | 4730 | 5010, 5020 |
| 21 | Debt on accrued interest settled | 6920 | 5010, 5020 |
| 22 | Payment made to the lessor | 6910, 6950 | 5010, 5020 |
Besides this table, 5020 also appears in other paragraphs: para. 185 (rows 4 and 6, accountable persons), para. 206 (row 10, shortage), para. 236 (row 1, cash equivalents), para. 239 (rows 1 and 6, cash in transit).
A note: the value in soums
Account 5020 records money in foreign currency. The rules for converting currency into soums and for exchange differences are not here but in NAS No. 22 (see "Related pages" below). This note only shows how the accounts link together.
Practical tips
- Keep currency apart from soums. Posting dollars to 5010 is the easiest mistake to make. Let both accounts be separate in the cash book (practical tip).
- Count the balance every day. Compare the actual currency in the cash desk with the 5020 balance in the ledger. If there is a shortage, it is recorded under row 20 of paragraph 223: Dr 4730 Cr 5010, 5020 (practical tip).
- Hand excess cash over to the bank. Under paragraph 222, cash above the limit is handed over to the bank. If it is currency, it goes into the currency account: Dr 5210 Cr 5020 (para. 229, row 3) (practical tip).
- Every entry needs a document. If there is no cash receipt or payment voucher, there should be no journal entry either (practical tip).
Main journal entries 30
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 |
|---|---|---|---|
| Interest on goods sold on credit received in cash (in trading organisations) | 5010, 5020 | 4830 | NAS No. 21, para. 223, row 1 |
| Products, work and services sold for cash | 5010, 5020 | 9010–9030 | NAS No. 21, para. 223, row 2 |
| Proceeds from the sale of fixed assets and other assets received in cash | 5010, 5020 | 9210–9220 | NAS No. 21, para. 223, row 3 |
| Money came into the cash desk from bank accounts (for wages, benefits, bonuses) | 5010, 5020 | 5110–5530 | NAS No. 21, para. 223, row 4 |
| An accountable person returned an unused earlier advance | 5010, 5020 | 4220–4290 | NAS No. 21, para. 223, row 5 |
| Issue income received from selling shares above their par value | 5010, 5020 | 8410 | NAS No. 21, para. 223, row 6 |
| Founders paid cash into the charter capital out of their share | 5010, 5020 | 4610 | NAS No. 21, para. 223, row 7 |
| Debt received from apartment tenants | 5010, 5020 | 4890 | NAS No. 21, para. 223, row 8 |
| Payments for utilities, communications services and others received | 5010, 5020 | 4890 | NAS No. 21, para. 223, row 9 |
| A loan to lend to workers for housing construction received in cash | 5010, 5020 | 6810, 7810 | NAS No. 21, para. 223, row 10 |
| Cash handed over from the cash desk and transferred to the settlement account at the bank | 5110–5530 | 5010, 5020 | NAS No. 21, para. 223, row 11 |
| The organisation's own shares bought back from shareholders | 8610, 8620 | 5010, 5020 | NAS No. 21, para. 223, row 12 |
| Costs connected with buying securities (brokers' fees) paid | 0610, 5810 | 5010, 5020 | NAS No. 21, para. 223, row 13 |
| Accrued wages and other payments (bonuses and the like) paid out | 6710 | 5010, 5020 | NAS No. 21, para. 223, row 14 |
| Accountable amounts issued | 4220–4290 | 5010, 5020 | NAS No. 21, para. 223, row 15 |
| A loan issued to employees | 4720 | 5010, 5020 | NAS No. 21, para. 223, row 16 |
| Various amounts issued (on payment sheets and others) | 6990 | 5010, 5020 | NAS No. 21, para. 223, row 17 |
| Cash paid on behalf of the organisation's separated divisions | 4110 | 5010, 5020 | NAS No. 21, para. 223, row 18 |
| Various non-reimbursable expenses connected with natural disasters paid | 9720 | 5010, 5020 | NAS No. 21, para. 223, row 19 |
| A shortage of cash found as a result of a stock-take | 4730 | 5010, 5020 | NAS No. 21, para. 223, row 20 |
| Debt on accrued interest settled | 6920 | 5010, 5020 | NAS No. 21, para. 223, row 21 |
| Payments due to the lessor made | 6910, 6950 | 5010, 5020 | NAS No. 21, para. 223, row 22 |
| An advance issued from the cash desk to accountable persons | 4220–4290 | 5010, 5020 | NAS No. 21, para. 185, row 4 |
| Unused accountable amounts returned to the cash desk | 5010, 5020 | 4220–4290 | NAS No. 21, para. 185, row 6 |
| A shortage of cash on hand and cash equivalents found in a stock-take | 4730 | 5010, 5020, 5610 | NAS No. 21, para. 206, row 10 |
| Cash equivalents bought for cash | 5610 | 5010, 5020 | NAS No. 21, para. 236, row 1 |
| Cash from the cash desk handed to a cash collector for transfer to the bank | 5710 | 5010, 5020 | NAS No. 21, para. 239, row 1 |
| Money in transit received into the cash desk | 5010–5020 | 5710 | NAS No. 21, para. 239, row 6 |
| Foreign currency came from the bank into the cash desk | 5020 | 5210, 5220 | NAS No. 21, para. 229, row 12 |
| Foreign currency handed over from the cash desk to the currency account | 5210, 5220 | 5020 | NAS No. 21, para. 229, row 3 |
Example
Zarafshon Safar LLC (a fictitious travel agency) has cash in foreign currency in its cash desk. All amounts are in US dollars and are taken for illustration only. At the start of the month, 5020 held 500 dollars.
| No. | Transaction | Dr | Cr | Amount, dollars |
|---|---|---|---|---|
| 1 | A foreign customer paid for a tour in cash dollars (Cr: from the range 9010-9030, for example 9030) | 5020 | 9030 | 1,800 |
| 2 | An advance for a business trip given to a guide | an accountable-person account from the range 4220-4290 (for example 4220) | 5020 | 600 |
| 3 | The guide returned part of the unused advance | 5020 | 4220 | 150 |
| 4 | Excess currency handed over from the cash desk to the currency account | 5210 | 5020 | 1,000 |
| 5 | Currency withdrawn from the bank currency account into the cash desk for petty expenses | 5020 | 5210 | 400 |
Source of the entries: 1 is para. 223, row 2; 2 is para. 223, row 15; 3 is para. 223, row 5; 4 is para. 229, row 3; 5 is para. 229, row 12.
Calculation for 5020:
| Item | Amount, dollars |
|---|---|
| Balance at the start of the month | 500 |
| Debit turnover (1, 3, 5) | 1,800 + 150 + 400 = 2,350 |
| Credit turnover (2, 4) | 600 + 1,000 = 1,600 |
| Debit balance at the end of the month | 500 + 2,350 − 1,600 = 1,250 |
Check: 500 + 2,350 = 2,850; 2,850 − 1,600 = 1,250 dollars. That is exactly how many cash dollars should be in the cash desk. If a count comes up short, that is a shortage: you record it under row 20 of paragraph 223 (Dr 4730 Cr 5010, 5020) (example prepared by the author).