Single Column Cash Book:
Learning Objectives:
-
Define and explain single column cash book.
-
Prepare a single column cash book.
Definition and Explanation:
Single column cash book records only cash
receipts and payments. It has only one money column on each of the debit and
credit sides of the cash book. All the cash receipts are entered on the
debit side and the cash payments on the credit side.
While writing a single column cash book the
following points should be kept in mind:
-
The pages of the cash book are vertically
divided into two equal parts. The left hand side is for recording receipts
and the right hand side is for recording payments.
-
Being the cash book with the balance brought
forward from the preceding period or with what we start. It appears at the
top of the left side as "To Balance" or "To Capital" in case of a new
business.
-
Record the transactions in order of date.
-
If any amount of cash is received on an
account, the name of that account is entered in the particulars column by
the word "To" on the left hand side of the cash book.
-
If any amount is paid on account, the name of
the account is written in the particulars column by the word "By" on the
right hand side of the cash book.
-
It should be balanced at the end of a given
period.
Posting:
The balance at the beginning of the period is
not posted but other entries appearing on the debit side of the cash book
are posted to the credit of the respective accounts in the ledger, and the
entries appearing on the credit side of the cash book are posted to the
debit of the proper accounts in the ledger.
Format of the Single Column Cash Book:
Following is the format of the single column
cash book:
|
Date |
Particulars |
L.F. |
Amount |
Date |
Particulars |
L.F. |
Amount |
| |
|
|
|
|
|
|
|
Example:
Write the following transactions in the simple
cash book and post into the ledger:
|
1991 |
|
|
|
Jan. 1 |
Cash in hand |
15,000 |
|
" 6 |
Purchased
goods for cash |
2,000 |
|
" 16 |
Received from
Akbar |
3,000 |
|
" 18 |
Paid to Babar |
1,000 |
|
" 20 |
Cash sales |
4,000 |
|
" 25 |
Paid for
stationary |
60 |
|
" 30 |
Paid for
salaries |
1,000 |
|
" 31 |
Purchased
office furniture |
2,000 |
Solution:
Cash Book
|
Date |
Particulars |
L.F. |
Amount |
Date |
Particulars |
L.F. |
Amount |
|
|
| |
| To
Balance b/d |
| To
Akbar |
| To
sales a/c |
|
|
|
| |
| |
|
| To
Balance b/d |
|
|
| |
|
15,000 |
|
3,000 |
|
4,000 |
|
|
|
|
|
22,000 |
|
|
15,940 |
|
|
| |
| By
Purchases a/c |
| By
Babar |
| By
stationary |
| By
Salaries a/c |
| By
Furniture a/c |
| By
Balance c/d |
|
|
|
|
|
|
| |
|
2,000 |
|
1,000 |
|
60 |
|
1,000 |
|
2,000 |
|
15,940 |
|
|
22,000 |
|
|
|
Akbar
| |
|
|
1991
Jan. 16 |
By Cash |
$
3,000 |
Sales Account
| |
|
|
1991
Jan. 2 |
By Cash |
$
4,000 |
Purchases Account
|
1991
Jan. 6 |
To Cash |
$
2,000 |
|
|
|
Babar Account
|
1991
Jan. 18 |
To Cash |
$
1,000 |
|
|
|
Stationary Account
|
1991
Jan. 25 |
To Cash |
$
60 |
|
|
|
Salaries Account
|
1991
Jan. 30 |
To Cash |
$
1,000 |
|
|
|
Furniture Account
|
1991
Jan. 31 |
To Cash |
$
2,000 |
|
|
|
You may also be interested in other relevant articles:
-
Definition and Explanation of Cash Book
-
Single
Column Cash Book
-
Two Column
Cash Book/Double Column Cash Book
-
Three
Column Cash Book
-
Bank Reconciliation Statement
-
Petty Cash Book
-
Purchases
Day Book
-
Purchases Returns Book
-
Sales Day
Book
-
Sales
Returns Book
-
Bills
Receivable Book
-
Bills Payable
Book
-
Journal Proper
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