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cash on hand. Definition. Funds that are immediately available to a business, and can be spent as needed, as opposed to assets that must be sold to generate cash. The amount of cash on hand determines what projects a company can undertake, or what financial hardships can be absorbed, without going into debt or arranging other financing.
Cash transactions are ones that are settled immediately in cash. Cash transactions also include transactions made through cheques. Cash transactions may be classified into cash receipts and cash payments. Cash Receipts. Cash receipts are accounted for by debiting cash / bank ledger to recognize the increase in the asset. Following are common types of cash receipt transactions along with relevant accounting entries: Cash Sale: