To show how the details of a payment or receipt are recorded, we’ve prepared sample transactions and the completed cash books for My Business.
We’ve included:
n a table showing sample transactions for My Business
n completed pages from the cash payments and cash receipts books for My Business using the sample transactions
n a completed activity statement, showing how and where the figures from the completed cash books and the worker payment summary get transferred to the completed activity statement
n a table with some additional information to help you understand how the transactions are recorded.

My Business is owned by a sole trader and is registered for GST. The business is a restaurant (the meals and drinks are subject to GST) but it also sells fresh fruit and vegetables (these are GST-free sales). My Business has one employee.
We’ve tried to show a wide range of transactions to help you understand how different transactions are recorded. Your business may not encounter such a wide range of transactions over a short period.
The transactions included in the list are from the day-to-day paperwork (cheque butts, cash register totals, invoices and so on) of My Business. Remember, it’s best to record these types of transactions as soon as practicable in your cash books.
To help trace the entries into the cash books, we’ve given each transaction a letter. The same letter is then written next to the corresponding entry in the cash payments or cash receipts book. The letter is also shown in the table following the cash books, which explains how the entries have been recorded.

Once all the transactions from My Business’s records had been entered in the cash books, the cash books were still not complete. When the business received its bank statement at the end of the month, it showed two transactions made by the bank:
n bank fees charged by the bank
n interest paid by the bank to My Business.
Once My Business recorded these entries in the relevant cash books, it had every transaction for the period recorded in its cash books. It is sound business practice to double-check all entries in your cash book against entries in the bank statement by doing a bank reconciliation
My Business then used the cash books to help complete its activity statement. The sample cash books show the activity statement labels where you record the relevant amounts.
Cash books can also help to show how profitable your business is and provide most of the information you need to complete your business income tax return.
We have also shown you how you can record the payment you make to us based on the figure in the completed activity statement