CASH
BOOK
This is the only book
that falls under both journal and ledger. It is a book that is used to record
cash transactions. It is made up of two sides just like every other ledger
which are the debit side and the credit side. The debit side is used to record cash
received while the credit side is used to record any cash paid by the business
Types
of Cash Book
There are three major
types of cash boo which are:
1.
Single column cash book
2.
Double column cash book
3.
Three column cash book
Format
of a Cash Book
|
Date |
Particulars |
F |
Amount |
Date |
Particulars |
F |
Amount |
|
|
|
|
|
|
|
|
|
The format of all the
cash books is the same except for the amount column where we have one column
for cash in the case of a single column cash book while the double column cash
book has two columns which are for cash and bank. The three column cash book
has three columns which are for cash, bank, and discount.
Illustration
(Single Column Cash Book)
The following are the
transactions of Fadworld for the month of November, 2021.
N
Nov. 1. Started
business with cash 80,000
Nov. 10 paid rent 10,000
Nov.15 cash sales 12,000
Nov. 21 paid electricity 7,000
Nov.28 Cash sales 3,000
Nov. 30 bought furniture 25,000
You are required to
prepare the cash book of Fadworld for the month of November, 2021.
SOLUTION
FADWORLD
CASH BOOK
|
Date |
Particulars |
F |
Amount |
Date |
Particulars |
F |
Amount |
|
|
|
|
|
|
|
|
|
|
01/11 |
Capital |
|
80,000 |
04/11 |
Rent |
|
10,000 |
|
15/11 |
Sales |
|
12,000 |
10/11 |
Purchases |
|
15,000 |
|
28/11 |
Sales |
|
3,000 |
21/11 |
Electricity |
|
7,000 |
|
|
|
|
|
30/11 |
Furniture |
|
25,000 |
|
|
|
|
|
|
Bal
c/d |
|
38,000 |
|
|
|
|
95,000 |
|
|
|
95,000 |
|
|
Bal
b/d |
|
38,000 |
|
|
|
|
DOUBLE
COLUMN CASH BOOK AND THREE-COLUMN CASH BOOK
As explained under the cash
book, a double-column cashbook has an additional column for a bank where deposits
and withdrawals from the bank are recorded. Instead of one column on each side for
cash, the columns will be doubled for recording cash and bank. Cash received is
debited under cash while cheques received are debited under bank. Payment made
in cash is credited under cash while every cheque issued by the firm are credited
under the bank.
ILLUSTRATION
The following
information has been extracted from the book of Konga for the month of January,
2022.
Jan
1. Started business with N100,000 cash and N50,000 cheque which is deposited
into the bank
Jan
3. Bought stationary by cash N2,000
Jan
7. Paid electricity by cheque N5,000
Jan
10. Cash sales N12,000
Jan
14. Withdrew N5,000 from bank for office use.
Jan
18. Received cheque of N10,000 from
Fiverr
Jan
20. Purchased goods on cash N10,000
Jan
23. Cash sales N15,000
Jan
25. Deposit N10,000 cash into the bank
Jan
30. Sales by cheque N3,000
You are required to
prepare three column cash book for the month of January, 2022.
SOLUTION
|
Date |
Particulars |
F |
Cash |
Bank |
Date |
Particulars |
F |
Cash |
Bank |
|
|
|
|
|
|
|
|
|
|
|
|
01/01 |
Capital |
|
100,000 |
50,000 |
03/01 |
Stationary |
|
2,000 |
|
|
10/01 |
Sales |
|
12,000 |
|
07/01 |
Electricity |
|
|
5,000 |
|
14/01 |
Bank |
C |
5,000 |
|
14/01 |
Cash |
C |
|
5,000 |
|
18/01 |
Fiverr |
|
|
10,000 |
20/01 |
Purchases |
|
10,000 |
|
|
23/01 |
Sales |
|
15,000 |
|
25/01 |
Bank |
|
10,000 |
|
|
25/01 |
Cash |
|
|
10,000 |
|
|
|
|
|
|
30/01 |
Sales |
|
|
3,000 |
|
Bal
c/d |
|
110,000 |
63,000 |
|
|
|
|
132,000 |
73,000 |
|
|
|
132,000 |
73,000 |
|
|
Bal
b/d |
|
110,000 |
63,000 |
|
|
|
|
|
No comments:
Post a Comment