Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
CASH
BOOK
Learning Objectives:
To explain the meaning of Cash Book
To discuss the types of cash book
To enter the transactions in Cash Book
(all formats)
To describe the meaning and need of
Petty Cash Book
To prepare the Petty Cash Book
Introduction
transactions increases.
Recording all the transactions only in the
purchased on credit
Sales return book for all returns of goods sold on
credit
Bills receivable book for all note received from
debtors
Bills payable book for all bills payable to creditors
Cash Book
Cash Book is a Book in which all
cash
receipts
Cash Account
transaction (Journal is
subdivided in to such a way
that a separate book is used
for each category of
transactions).
Books of original entry
It is an account in ledger.
journal, it is necessary to
open account is ledger.
1.
2.
3.
4.
ordinary account.
It records only cash receipts and cash payments.
It has two sides, namely debit and credit.
Cash account is an asset account, so the rule
followed is Increase in assets to be debited and
Decrease in asset is to be credited.
Cash receipts are recorded on the debit side i.e.
left hand side and cash payments are recorded on
the credit side i.e. right hand side.
It is also known as single column cash book as
there is only one amount column on its debit side
and on the credit side.
Explanation
Date
In this column Year, Month and Date of transactions are
recorded in chronological order.
Particulars
In this column, the name of the account in respect of which cash
has been received or payment has been made is written.
Ledger Folio
In this column, it records the page number of the ledger book on
which relevant account is prepared.
Amount
In this column, it records the amount received on debit side and
cash paid on its credit side.
the total of the credit side and the difference if any is entered
as balance c/d.
In case of Simple Cash Book, the total of debit side is always
more than the total of the credit side, since the payment can
never exceed the available cash. The difference is written in
the amount column and total of the both sides of the cash
book becomes equal.
The closing balance of the credit side becomes the opening
ILLUSTRATION 1
Enter the following transactions in the cash book of M/s. Rohan
Traders
Date
1. December
2. December
3. December
4. December
5. December
6. December
26,000
7. December
8. December
9. December
10. December
11. December
12. December
01,
05,
08,
10,
14,
18,
Details
2005
2005
2005
2005
2005
2005
Amount (Rs.)
Cash in Hand
27,500
Cash received from A
12,000
Insurance Premium paid 2,000
Furniture purchased for cash6,000
Sold Goods for cash
16,500
Purchased Goods for cash from B
22,
25,
27,
28,
29,
30,
2005
2005
2005
2005
2005
2005
Cash paid to C
3,200
Sold Goods to D for cash
18,700
Purchased goods on credit 15,00
Cash Deposited into Bank 5,000
Purchased building from E 100,000
Rent paid
4,000
ILLUSTRATION 2
Prepare Cash Book for the month of April 2006 from the following
particulars :
Date
2013
Details
1. April 01
2. April 03
3. April 06
4. April 10
5. April 15
6. April 17
7. April 19
8. April 21
9. April 25
10. April 28
11. April 30
Amount (Rs.)
Discount Allowed
Discount Received
Note:
Discount columns are not balanced they are only
totaled.
ILLUSTRATION 1
2005
Rs.
Jan 1
Cash in hand
15,000
Jan 5
Paid to A 3,000
Discount allowed by him 100
Jan 6
Purchased goods for cash 4,000
Jan 10 Received from B 9,800
ILLUSTRATION 2
X started business on 1.4.2005 with Rs. 20,000
as Capital. He had following cash transactions
in the month of April 2005.
ILLUSTRATION 1
Discount Allowed
500
10
Purchased Typewriter by Cheque
5,400
15
Sold Goods and received Cheque
7,900
(deposited on the same day)
17
Purchased Stationery by Cheque
1,000
20
Cash deposited into bank
10,000
22
Paid Cartage
500
24
Cheque given to Mudit
7,000
28
Rent paid by Cheque
3,000
ILLUSTRATION 2
Prepare Bank Column Cash Book from the following information:
Date
1 Dec
1
4
6
9
13
..
15
18
22
25
27
29
31
..
Details
Amount (Rs.)
2009 Cash in hand
10,500
Bank Overdraft
9,500
Paid Wages
400
Cash Sales
10,000
Cash deposited into Bank
5,000
Purchased Goods and paid by cheque
6,000
Discount received
1000
Cash deposited into Bank
4,000
Paid Trade Expenses by cheque
1,200
Rent paid
2,300
Received Cash from Rahul
1,500
Commission paid
2,000
Salary paid
3,500
Bought Goods by Cheque
3,000
Discount received
200
Amoun Dat
t
e
receiv
ed
Particul
ars
Vouche
r no.
Amou
nt
paid
Analysis of payments
Conv
eyan
ce
Posta
ge
Statio Misce
nary
llane
ous
ILLUSTRATION 1
ILLUSTRATION 2
THANK YOU