CASH BOOK

Cash book is a book of accounting or ledger account used for recording cash receipt and payments of money. It is used to record all cash received and paid out by the organisations.

The cash of a business constitutes cash in hand and cash bank.

There are three types of cash book

  • Single column / one column cash book
  • Double column / two column cash book
  • Three column cash book

SINGLE COLUMN/ONE COLUMN CASH BOOK

This cash book takes care of cash only. It is used to record cash received and cash payment.

It is called single column cash book because it has only cash in both debit and credit sides.

Dr                    Single Column Cash Book                                                        Cr

Date     Particular        F          amount            Date    Particular        F          Amount

Single Column Cash Book

Example: Prepare single column cash book of Madam Kofo as at 31st Jan, 2000 and open all necessary ledger.

Jan 1    Started business with                         10,000 cash

Jan 2    Paid office expenses                           1,500

Jan 10  Bought goods worth                           3,500

Jan 20  Paid rent                                             500

Jan 25  Cash sales                                            2,800

Jan 26  Paid insurance                                     300

Jan 27  Mr Timilehin paid cash                       1,200

Jan 30  Paid wages                                          600

Madam Kofi

Single Column Cash Book

Date Particular F Amount Date Particular F Amount
 

Jan 1

 

Capital

N : K

10,000

 

Jan 2

 

Office expenses

N : K

1,500

Jan 25 Sales 3,800 Jan 10 Purchases 3,500
Jan 27 Mr Timilehin 1,200 Jan 20 Rent 500
Jan26 Insurance 300
Jan 30 wages 600
Jan 31 Balance c/d 8,600
1,500 15,000
Feb 1 Balance b/d 8,600

Ledger Account

Capital Account

Jan 1:            cash                  10,000

Sales Account

Jan 25:            cash            10,000

Purchases Account

Jan 10:         cash                      3,500

Office expenses

Jan 2:            cash                      2,500

Mr Timilehin Account

Jan 27:                cash                     1,200

Rent Account

Jan 20:           cash                  500

Wages

Jan 30:             cash                  600

 

Insurance

15 Places to WIN $10,000
15 Places to WIN $10,000 Cash
Jan 26:             cash                  300

See also

PETTY CASH BOOK

LEDGER ENTRIEES

BOOK – KEEPING ETHICS

SHOPPING TIPS

CONSUMER RIGHT

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