Single Column Cash Book

INTRODUCTION: This is the book for recording receipts and payments of money in cash or cheque.

NOTE: No credit transaction should be recorded in the cash book.

 

CASH ACCOUNT

This is the account which is used for recording money received and paid with cash. The balance is referred to as CASH IN HAND. All cash received must be debited while cash paid will be credited to the cash account.

Illustration 1:

Enter the following transactions in the cash account of Olaide

N

July 1 Cash in hand                   1,500

July 3 Cash to Okola                   250

July 5 Cash Sales                        500

July 6 Cash purchases                  700

July 7 Bought Stationery                50

July 9 Paid Insurance                     30

July 10 Paid wages                      25

July 12 cash sales                        155

SOLUTION

DR                                            CASH ACCOUNT                               CR

N                                                                                                                                 N

July 1 bal. b/f      1,500                                                                 July 3 Okola            250

July 5 sales           500                                                                  July 6 Purchaser      750

July 12 sales         115                                                                    July 7 Stationery       50

July 9 Insurance        30

July 10 wages             25

Bal. c/d                        1,010

2,115                                                              2,115

 

BANK ACCOUNT

The bank account is a record of money deposited into the bank and money withdrawn from the bank. All cheques received must be debited while cheques issued out must be credited.

Illustration 2:

Enter the following transactions in the bank account of Ogundele.

N

June 1 Cash in hand                                             2,500

June 3 Paid to Okocha by cheque                     650

June 5 Sold goods and received cheque         450

June 6 Received Cheque from Agali               230

June 7 Sent Cheque to Komolafe

June 9 Bought goods with cheque                    300

 

SOLUTION

DR                                          BANK ACCOUNT                        CR

N                                                                                                                   N

June 1 bal. b/f      2,500                                                                July 3 Okocha          650

June 5 sales              450                                                                July 6 Purchaser       750

June 6 sales              230                                                                July 7 Stationery       50

July 9 Insurance        30

July 10 wages              25

 

Bal. b/d 1,910                                                                                  Bal. c/d                       1,010

3,180                                                                                                   3,180

 

See also

CONTRA ENTRY

DOUBLE COLUMN CASH BOOK

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