Simple or Single Column Cash
Book:
Contents:
-
Definition
-
Balancing the
cash book
-
Example 1
-
Example 2
|
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). |
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.
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:
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:
|
