01
The Instructions Sheet
Four things to read first, including the new section numbers, then nine steps, the cash limits in one table and what the workbook does not do.
Cash Book Format in Excel, with Petty Cash and a Day-End Count (2026)
Since 1 April 2026 the cash limits sit in the Income-tax Act, 2025, under new section numbers. This free Excel records cash and bank side by side and flags, row by row, any payment, loan or receipt that crosses one. Updated October 2026.
- Cash and bank columns with running balances, and a check on every row against the cash limits
- A petty cash book on the imprest system, with the top-up worked out for you
- A day-end count by note against the book, a monthly summary and the 5% cash test for the audit limit
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Petpooja presents
Cash Book Format
For shops, cafes and small businesses
₹10,000
Daily cash limit · Excel
2026
What's Inside
Nine sheets from the first entry to a drawer that matches the book
02
The Cash Book
Cash and bank side by side for 300 entries, with running balances, a head of account for every row and a Check column that names the section when an entry crosses a cash limit.
03
The Petty Cash Book
A fixed float for small expenses, spread over seven heads, with the balance in hand and the top-up needed to restore the float.
04
The Day-End Cash Count
Count the drawer note by note, and see it against the Cash Book's balance for that date, short or over.
05
The Monthly Summary
Twelve months of cash and bank in and out, month-end balances, flagged entries, and the 5% cash test that decides whether your audit limit is one crore or ten.
06
The Cash Rules and Three Examples
Every provision behind the Check column, quoted or summarised from the Acts with the 1961 number where there was one, and one week at a made-up cafe with five rows flagged on purpose.
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Why This Matters
The cash limits moved to new sections
Most cash book formats online still quote sections 40A(3) and 269ST. Those belong to the Income-tax Act, 1961, which the Income-tax Act, 2025 replaced on 1 April 2026. The amounts stayed the same. The section numbers did not, and a cash book that names the wrong one will look out of date to your accountant.
Three limits matter most to a shop or a cafe. Pay one person more than ₹10,000 in cash in a day and the expense is not deductible, under section 36(4). Take a loan of ₹20,000 or more in cash from a relative, friend or supplier and section 185 is broken. Receive ₹2,00,000 or more in cash from one person in a day, in one transaction or for one event, and section 186 is broken. For the last two, the penalty can be the whole amount.
The one that catches restaurants is "one event or occasion". An engagement party pays a ₹1,50,000 cash advance on Saturday and ₹70,000 on Monday. Neither day crosses ₹2,00,000, but the event does. Give the order a reference in the cash book and the parts are added up. Our guide to closing and reconciling the day covers the rest of the closing routine.
UPI is not cash for these rules. The Income-tax Rules list UPI, cards, net banking, NEFT, RTGS and IMPS as electronic modes, so those sales go in the bank columns. Entering them as cash is also why a drawer count and a payment report stop matching.
Sample Preview
What each sheet gives you
Here's a preview of what you'll get inside, sheet by sheet, in the order they open.
Instructions: Four things to read first, the sheets, nine steps, the cash limits and what the workbook does not do.
Cash Book: Date, voucher no., party, event ref, head, cash in, bank in, cash out, bank out, cash in hand, bank balance and the Check column.
Petty Cash Book: Float, top-up received, amount paid, seven expense heads, balance in hand and the top-up needed.
Day-End Cash Count: Count of each note and the coins, the total, the Cash Book balance for that date, and the difference.
Monthly Summary: Cash and bank in and out by month, month-end balances, flagged entries and the 5% cash test.
Cash Rules: Twelve provisions, quoted or summarised, with the 1961 section number where there was one and what each means for your book.
Examples: A made-up cafe's week: cash in hand ends at ₹95,690, five rows flagged, and the drawer count ₹200 short.
... all 9 sheets in one Excel file, with the formulas locked and the input
cells in yellow.
Key Stats
Three cash limits from the Income-tax Act, 2025
₹10,000 a day
Cash paid to one person in a day above this is not allowed as a deduction. ₹35,000 for goods transporters.
Source: Income-tax Act, 2025, s.36(4) and (6), read 26-Oct-2026₹2,00,000 or more
Must not be received in cash from one person in a day, in one transaction or for one event. The penalty can equal the sum received.
Source: Income-tax Act, 2025, s.186 and s.451, read 26-Oct-20265% cash share
Keep cash receipts and cash payments each within 5% and the tax audit limit for a business rises from ₹1 crore to ₹10 crore.
Source: Income-tax Act, 2025, s.63, read 26-Oct-2026
Common Mistakes
7 Cash Mistakes Small Businesses Make
01
Quoting 40A(3) and 269ST
Those are the 1961 Act's sections. From 1 April 2026 the limits sit in sections 36(4) and 186 of the Income-tax Act, 2025.
02
Splitting a cash payment across the day
Two payments of ₹6,000 to the same supplier on the same day are ₹12,000. The limit counts the whole day's payments to that person.
03
Counting a party order's payments one by one
Payments for one event or occasion are added up, whatever the day. A wedding or party order paid in cash parts can cross ₹2,00,000 without any single day doing so.
04
Entering UPI and card sales as cash
They belong in the bank columns. Mixed in with cash, the drawer never matches the book or the Z-report.
05
Paying for equipment in cash
Pay more than ₹10,000 in cash in a day for an asset and that whole payment is left out of its cost, so it earns no depreciation. Our depreciation calculator shows what that costs.
06
Taking a cash loan from family
A loan of ₹20,000 or more taken in cash breaks section 185, even from a relative or a friend, and the penalty can equal the loan.
07
Paying small expenses from the cash drawer
A petty cash float with a voucher for every payment keeps the drawer for sales only, so the day-end count has one job.
Comparison
A Copied Format vs This Workbook
| Aspect | A copied format | With this workbook |
|---|---|---|
| Section numbers | 40A(3) and 269ST, from the 1961 Act | 36(4) and 186, from the 2025 Act |
| Cash and bank | Cash only, or two separate books | Side by side, with deposits and withdrawals in one row |
| A party order paid in parts | Each part looks fine | Added up by event reference |
| The ₹10,000 limit | Found at the audit | Flagged on the row, the same day |
| Drawer count | A separate notebook | Counted by note against the book |
| The 5% audit test | Not worked out | Worked out for the year |
Swipe the table sideways to see the full comparison.
A cash book that catches the limit before you pay
Download the free cash book format and see each entry checked against the cash rules as you type it.
FAQ
Frequently asked questions
What is the format of a cash book?
A cash book has one row per receipt or payment: date, voucher or bill number, who paid or was paid, the head of account, the amount and the running balance. A double-column cash book adds bank beside cash, so a cash deposit into the bank is one row with both sides filled. This workbook is a double-column cash book, with a check column added.
What is the cash payment limit under the Income-tax Act, 2025?
Section 36(4) disallows an expense where payments to one person in a day exceed ₹10,000 and are not made by account payee cheque, draft, bank transfer or a prescribed electronic mode. The figure is ₹35,000 for goods transporters. The Income-tax Rules allow some exceptions. This page is general guidance, not tax advice; check a flagged payment with your accountant.
Is there a limit on receiving cash?
Yes. Section 186 bars receiving ₹2,00,000 or more in cash from one person in a day, in one transaction, or for one event or occasion, and section 451 allows a penalty equal to the sum received. Loans and deposits of ₹20,000 or more must not be taken in cash either, under section 185. Your cash memo records the sale; the cash book shows where the limits are.
What is a petty cash book and the imprest system?
It is a small book for small cash expenses, kept apart from the main cash. Under the imprest system you fix a float, spend from it, and top it back up by exactly what was spent, so the float is always the same figure. The workbook works out the top-up for you.
Is it compulsory to keep a cash book?
The Income-tax Act, 2025 counts cash books as books of account in section 2(19), and section 62 requires books once business income or turnover crosses set figures, which are higher for individuals and HUFs. Under GST, section 36 of the CGST Act keeps records for 72 months from the annual return's due date. For the month-ahead view, our cash flow management template works alongside.
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