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Home Cash Book Simple or Single Column Cash Book
 
 

Simple or Single Column Cash Book:

Contents:

  1. Definition

  2. Balancing the cash book

  3. Example 1

  4. Example 2

Definition:

By cash we mean currency of notes

It is a cash book in which only and only cash transactions are recorded. By single column we mean "one amount column" on each side of the Cash Book. One amount column on the debit side in which inflow of cash (cash received) is recorded and one amount column on the credit side in which outflow of cash (cash paid) is recorded. It is generally maintained by such business concerns which do not have bank accounts. (small business concerns).

Balancing the Cash Book:

The Cash Book is balanced in the same way as a ledger account. A Single Column Cash Book always shows debit balance (Debit side exceeding credit side) because more cash cannot be paid than what we have. To verify the accuracy of the Cash Book, it should be balanced daily (which may be shown in the Cash Book with red pencil). The balance as per the Cash Book must tally with the actual cash in the cash box. At the end of the period the Cash Book is finally balanced (showing debit balance) and the balance is put on the credit side for the purpose of closing the cash book. This balance will be transferred on the debit side of the Cash Book as opening balance of the next period.

Example 1:

Enter the following transactions in the cash book of Mr. Jamil:

2005.   $
Jan. 1 Mr. Jamil started business with cash 2,00,000
Jan. 3 Bought goods for cash 1,40,000
Jan. 5 Paid for stationary 2,000
Jan. 7 Sold goods for cash 80,000
Jan. 10 Paid for trade expenses 2,000
Jan. 11 Sold goods for cash 20,000
Jan. 14 Received cash from Mr. Asif 10,000
Jan. 15 Paid cash to Mr. Qadir 20,000
Jan. 18 Withdrew cash for personal use 6,000
Jan. 22 Bought goods for cash 40,000
Jan. 25 Sold goods for cash 90,000
Jan. 27 Paid for electricity bill 4,000
Jan. 31 Paid salary 10,000
Jan. 31 Paid rent 3,000

Solution:

Single Column Cash Book of Mr. Jamil

Date

Particulars

V.N. L.F. Amount ($) Date

Particulars

V.N. L.F. Amount ($)
2005         2005        
Jan. 1 Capital A/C
(Being business started)
    200,000 Jan.3 Purchases A/C
(Being goods bought for cash)
    140,000
Jan.7 Sates A/C
(Being goods sold)
    80,000 Jan.5 Stationery A/C
(Being stationary purchased)
    2,000
Jan. 11 Sales A/C
(Being goods sold)
    20,000 Jan.10 Trade expenses
(Being expenses paid)
    2,000
Jan. 14 Mr. Asif A/C
(Being cash received)
    10,000 Jan.15 Mr. Qadir A/C
(Being cash paid)
    20,000
Jan. 25 Sales Aft
(Being goods sold)
    90,000 Jan.18 Drawing A/C
(Cash drawn for personal use)
    6,000
          Jan.22 Purchase A/C
(Being goods bought)
    40,000
          Jan.27 Electricity A/C
(Being bill paid)
    4,000
          Jan.31 Salary A/C
(Being salary paid)
    10,000
          Jan.31 Rent A/C
(Being rent paid)
    3,000
          Jan.31 Balance c/d     173,000
       
       
        4,00,00         4,00,00
       
       
Feb. 1 Balance b/d     173,000          

A single column Cash Book may also be used even if an account is to be opened in a bank. In such a case, a separate Bank A/c will be opened in Ledger where all bank transactions are posted from Cash Book and other subsidiary books. An example is given below:

Example 2:

Enter the following transactions in a Single Column Cash Book and prepare Bank A/c in ledger.

2005   $
March 1 Cash in hand 80,000
March 1 Bank Balance 120,000
March 3 Received a cheque from Osman 24,000
March 4 Deposited Osman's cheque with bank --
March 8 Withdrawn from bank for business use 20,000
March 10 Goods sold for cash 30,000
March 15 Goods bought for cash 80,000
March 18 Goods sold for cash 60,000
March 20 Paid Rahim by cheque 26,000
March 30 Deposited into bank 16,000
March 31 Paid salary in cash 10,000
March 31 Paid rent by cheque 6,000

Solution:

Cash Book

Date

Particulars

V.N. L.F. Amount ($) Date

Particulars

V.N. L.F. Amount ($)
2005 Balance b/d     80,000 2005        
Mar. 1 Osman A/C
(Being cheque received)
    24,000 Mar. 1 Bank A/C
(Being cheque deposited)
    24,000
Mar. 8 Bank A/C
(Being amount withdrawn)
    20,000 Mar. 15 Purchases A/C
(Being goods bought for cash)
    80,000
Mar. 10 Sales A/C
(Being goods sold for cash)
    30,000 Mar. 15 Bank A/C
(Being cash deposited)
    16,000
Mar. 18 Sales A/C
(Being goods sold for cash)
    60,000 Mar. 30 Salary A/C
(Being salary paid)
    10,000
          Mar. 31 Balance c/d     84,000
       
       
        2,14,000         2,14,000
       
       
Apr.1 Balance b/d     84,000          

Note: Bank balance and transactions dated 20th March and 31st March are not recorded in Cash Book as they do not involve cash.

Bank Account In Ledger

Date Reference J/F Amount $ Date Reference J/F Amount $
2005

Mar. 1

4

5



Balance b/d

Cash A/C

Cash A/C

   

120,000

24,000

16,000

2005

Mar. 8

20

31

31



Cash A/C

Rahim A/C

Rent A/C

Balance c/d

   

20,000

26,000

6,000

108,000

      160,000       160,000
April. 1 Balance b/d   108,000        

Relevant Articles:

Definition and Explanation of Cash Book
Simple or Single Column Cash Book
Two/Double Column Cash Book
Treble/Three Column Cash Book
Petty Cash Book

 

 

A D V E R T I S E M E N T

 

Financial Accounting Topics


  Introduction to Accounting
 ----------------------------------------------------------------------------
  Transactions and Accounting Equation
----------------------------------------------------------------------------
  Analysis of Business Transactions
----------------------------------------------------------------------------
  Journal, Ledger and Trial Balance
----------------------------------------------------------------------------
  Accounting for Bills of Exchange
----------------------------------------------------------------------------
  Special Journals
----------------------------------------------------------------------------
  Cash Book
----------------------------------------------------------------------------
Bank Reconciliation Statement
----------------------------------------------------------------------------
  Final Accounts
----------------------------------------------------------------------------
  Work Sheet
----------------------------------------------------------------------------
  Capital and Revenue Items
----------------------------------------------------------------------------
  Valuation of Inventories
----------------------------------------------------------------------------
  Accounts of Non-profit Making Organizations
----------------------------------------------------------------------------
  Statement of Cash Flows
----------------------------------------------------------------------------
  Accounting Ratios Analysis
----------------------------------------------------------------------------
  Depreciation, Provisions and Reserves
----------------------------------------------------------------------------
  Accounting Dictionary
----------------------------------------------------------------------------
  Financial Calculators
 
 
 
Managerial Accounting Topics

  Financial Statements
----------------------------------------------------------------------------
  Cost Volume Profit Relationship
----------------------------------------------------------------------------
  Variable Costing System
----------------------------------------------------------------------------
  Materials and Inventory Cost Control
----------------------------------------------------------------------------
  Activity Based Costing System
----------------------------------------------------------------------------
  Standard Costing and Variance Analysis
----------------------------------------------------------------------------
  Balanced Scorecard
----------------------------------------------------------------------------
  Capital Investment Analysis/Capital Budgeting
 

 

 

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