Cash Book

CASH BOOK/CASH
JOURNAL
Cash Journal or Cash Book
is meant for recording cash
transactions.
It consists of the cash and
Bank account taken out of
the ledger.
Importance of Cash
transactions
 The number of cash transactions
is quite large in the business.
 The chances of fraud committed
in such transactions are higher.
 Cash is the nerve centre of the
business
TYPES OF CASH BOOK
 Simple/Single Column Cash

Book
 Double/Two Columnar Cash
Book
 Three Columnar/ Triple column
Cash Book
 Petty Cash Book
Simple/ Single column
cash book
 Simple Cash Book is like an
ordinary Cash Account.
 Being a Real account----What
comes in is debited; what
goes out is credited.
SIMPLE CASH BOOK
Date Particu l.f. Amt Date Partic l.f. A
lars ulars mt
 Balances as per Cash Book
must tally with the actual
cash in hand.
NUMERICALS
 Record the following transactions in the

Cash Book of Mr. Z and post them in the
ledger:
2008
Jan1 Opening Cash balance Rs. 5,000
Jan 4 Bought goods for cash Rs. 1269
Jan 5 Rent paid Rs. 2,500
Jan8 Interest received Rs. 3,000.
Jan 10 Cash Sales Rs. 8,000
Jan 15 Salaries paid Rs. 1,000
Jan 19 Paid for office furniture in
cash Rs. 567.
Jan 23 Deposited in bank Rs.
4,500
Jan 26 Purchased goods worth
Rs. 6,500 from R on credit
Write up a single column
cash book:
2006 Rs.
Apr 1 cash in hand 1,500
2 Purchased goods for cash Rs 200
3 Paid cartage Rs. 50
5 Cash sales Rs. 100
9 Paid wages Rs. 500
11 Received cash from Mr. B Rs. 600
13 Sold old Furniture Rs. 790
2006
Apr 15 Cash sales Rs. 300
14 Goods purchased on credit from
Mr. K Rs. 1,000
16 Sold goods to S Rs. 200
19 Bought stationery Rs. 100
25 Withdrawn from business for
personal use Rs. 100
28 Paid electricity bill Rs. 50
30 Paid office rent Rs. 100
Double Column/Two
columnar cash Book
 Such a cash book has two columns:
1) Cash Column
2) Discount Column
 Cash column is meant for recording cash
receipts and payments.
 While discount column is meant for
recording discount received and the
discount allowed.
 Discount columns are not balanced
but merely totalled.
 The total of discount column on the
Dr. side of the cash book is posted to
the debit of the discount allowed a/c
and the total of discount column on
the Cr. Side of the cash book is posted
to credit side of the discount received
a/c.
Enter the following
transactions in the cash
book:
Apr 1 Mr. A commenced business with Rs.
3,000 borrowed from Mr. B.
Apr 5 Paid for the purchase of goods Rs.
1,500 and carriage Rs. 20.
Apr 7 Sold goods to Mr. C Rs. 1,500 on
credit.
Apr 11 Received from Mr C Rs. 1,200 in
part payment of goods and allowed him
a discount of Rs. 50.
Apr 15 Received for stationery Rs. 30
Apr 19 Remitted to Mr. D Rs. 200 in
full settlement of his account of Rs.
210.
Apr 21 Cash sales for the day Rs.
800
Apr 22 Mr. E settled his account of
Rs. 500 deducting Rs. 30 as
discount.
Apr 29 Discharged debts of Mr. X Rs.
860 at a discount of 5%.
Prepare ledger a/cs of discount
allowed and discount received.
TRIPLE COLUMN CASH
BOOK
 This Cash Book has columns
for Cash, discount as well as
for Bank.
 As a result, no Bank account
need to be maintained in the
Ledger.
TRIPLE COLUMN CASH
BOOK
 It has three columns:
1. Discount Column----A Nominal
account
2. Cash column----A Real Account
3. Bank column---A Personal
account
TRIPLE COLUMN CASH
BOOK
Balancing:
 Cash Columns are balanced.
 Discount columns are not

balanced, but only totalled.
 Bank columns are also
balanced just like cash
columns.
NUMERICALS
 From the following transactions,

write a three columnar cash book
for Anthony & Co. Also post in the
ledger.
2006
June1 Cash in hand Rs. 3,458
Balance with Bank Rs.
10,000
2006
June 2 Cash sales Rs. 1,050
June 4 Received cash from Mr. B, a
customer, Rs. 3,800 allowed him
discount Rs. 200.
June 7 Withdrew cash from Bank Rs.
5,000.
June 8 Paid salaries and wages Rs.
10,050 in cash.
June 9 Received cheque from Mr. R for
Rs. 3,450. Allowed him discount Rs. 50.
2006
June 12 Paid Amar & Co. by a
cheque drawn for Rs. 2,400.
Discount received Rs. 100.
June 13 Bank advised that the
cheque of Rs. 3,450 (received
from Mr. R) has been returned
unpaid.
June 15 Deposited cash Rs. 1,200
in the Bank.
Prepare a three columnar cash book
from the following transactions and
post them to appropriate ledger
accounts:
2007
Mar 1 Cash Balance Rs. 7,000.
Mar 1 Bank Balance (Dr.) Rs.
1,00,000.
Mar 3 Cash sales Rs. 60,000
Mar 6 Rent paid by cheque Rs.
24,000
Mar 8 Cash deposited in the bank Rs.
60,000.
2007
Mar 10 Wages paid Rs. 1,000
Mar 10 Rent paid Rs. 1,800.
Mar 12 Received from Mohan Rs.
7,800, Discount allowed Rs. 200
Mar 14 Goods Purchased Rs. 4,000
Mar 16 Withdrawn from Bank for
office use Rs. 20,000
Mar 18 Issued cheque to Hari Rs.
13,400, Discount received Rs. 600.
Mar 20 Withdrawn cash for personal
use Rs. 4,000.
2007
Mar 22 Received cheque from
shyam and deposited in bank. Rs.
10,000
Mar 24 Shyam dishonoured the
cheque Rs. 10,000
Mar 26 Furniture purchased and
issued cheque Rs. 6,000.
Mar 29 Received interest on
investements Rs. 3,000
Mar 30 Paid salaries Rs. 4,800
PETTY CASH BOOK
 Used for recording small
payments which have to be made
in cash.
 Maintained to relieve the main
cash book from numerous
transactions involving petty
amounts.
 Examples of Petty cash expenses
are Carriage, cooly hire, postage,
travelling charges, telegrams etc.
PETTY CASH BOOK
 Imprest System
 This is a method of keeping “Petty
Cash” under which the petty cashier is
provided a fixed amount of money
termed as “Float”.
 At the end of the balancing period, the
petty cashier is given fresh cheque for
the amount which he has spent.
NUMERICALS
On 1st of October, 2006, H. wood

commenced business with a
capital of Rs. 30,000 of which Rs.
25,000 was deposited in bank and
the balance was retained in hand
for business purposes. During the
month of October, his
transactions were as follows:
2006
Oct 1 Bought of Sachin goods by
cheque Rs. 7,000
Oct 2 Sold goods to Williams Rs.
510 cash.
Oct 3 Bought Furniture for cash
Rs. 500
Oct 4 Purchased goods from C
Rs. 580
Oct 7 Purchased goods from Mr.
J Rs. 230
2006
Oct 8 Returned goods to Mr. J Rs. 30.
Oct 8 Paid C by cheque in full
settlement of his account Rs. 560.
Oct 11 Accepted B/E drawn by J Rs. 200
Oct 12 Goods bought for cash Rs. 150.
Oct 14 Goods sold to Mr. S Rs. 130.
Oct 16 Received cash from Williams Rs.
500, Discount allowed Rs. 10.
Oct 17 Received back goods from Mr. S
Rs. 20.
2006
Oct 18 Received Mr. S’s acceptance for Rs.
110.
Oct 20 Withdrew from Bank for private
expenses. Rs. 110.
Oct 31 Cash sales for the month Rs. 1,400
Paid establishment charges in cash Rs.
120.
Remitted to bank cash in hand this day
excepting Rs. 100.
Paid rent by cheque Rs. 50.
Stock on 31st of October, 2006 Rs.
6,370.

Cash Book

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CASH BOOK/CASH

 Simple/Single Column Cash

 Record the following transactions in the

 Discount columns are not

 From the following transactions,

On 1st of October, 2006, H. wood

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