WEEK SIX
TOPIC: CASH BOOK
Cash book is a book of accounting or ledger account used for recording cash receipt and payments of money. It is used to record all cash received and paid out by the organizations.
The cash of a business constitutes cash in hand and cash bank.
There are three types of cash book
- Single column / one column cash book
- Double column / two column cash book
- Three column cash book
SINGLE COLUMN/ONE COLUMN CASH BOOK
This cash book takes care of cash only. It is used to record cash received and cash payment.
It is called single column cash book because it has only cash in both debit and credit sides.
Dr Single Column Cash Book Cr
Date Particular F amount Date Particular F Amount
Single Column Cash Book
Example: Prepare single column cash book of Madam Kofo as at 31st Jan, 2000 and open all necessary ledger.
Jan 1 Started business with 10,000 cash
Jan 2 Paid office expenses 1,500
Jan 10 Bought goods worth 3,500
Jan 20 Paid rent 500
Jan 25 Cash sales 2,800
Jan 26 Paid insurance 300
Jan 27 Mr Timilehin paid cash 1,200
Jan 30 Paid wages 600
Madam Kofi
Single Column Cash Book
| Date | Particular | F | Amount | Date | Particular | F | Amount |
| Jan 1 | Capital | N : K 10,000 | Jan 2 | Office expenses | N : K 1,500 | ||
| Jan 25 | Sales | 3,800 | Jan 10 | Purchases | 3,500 | ||
| Jan 27 | Mr Timilehin | 1,200 | Jan 20 | Rent | 500 | ||
| Jan26 | Insurance | 300 | |||||
| Jan 30 | wages | 600 | |||||
| Jan 31 | Balance c/d | 8,600 | |||||
| 1,500 | 15,000 | ||||||
| Feb 1 | Balance b/d | 8,600 |
Ledger Account
Capital Account
| Jan 1: cash 10,000 |
Sales Account
| Jan 25: cash 10,000 |
Purchases Account
| Jan 10: cash 3,500 |
Office expenses
| Jan 2: cash 2,500 |
Mr Timilehin Account
| Jan 27: cash 1,200 |
Rent Account
| Jan 20: cash 500 |
Wages
| Jan 30: cash 600 |
Insurance
| Jan 26: cash 300 |