by examples tell simple cash book
Answers
1st Example :
Making of Simple Cash Book (Single Column Cash Book )
Mr. M starts business with Rs. 20,000 on 1st April 2012. Of this he pays Rs. 15000 into his bank account. His cash transactions during the week were:
April 1 Purchased stationery for cash Rs. 100
April 2 Purchased goods for cash Rs. 2500
April 2 Cash Sales Rs.1500
April 3 Received from J Brown Cash on account Rs. 1000
April 4 Paid to J. R Cash Rs. 2200
April 5 Paid for Advertisement Rs. 400
April 6 Cash Sales Rs. 1800
April 6 Purchased old machinery Rs. 800
April 6 Purchase from sham on credit Rs. 6000
Make out a single column cash book .
Dr. Cash Book Cr.
Date Receipts V.No. L.F. Amount Date Payments V.No. L.F. Amount
April 1, 2012 To Capital a/c 20000 April 1, 2012 By Bank a/c 15000
April 2 To Sale a./c 1500 April 1 By Stationery a/c 100
April 3 To J. Brown a/c 1000 April 1 By Purchase a/c 2500
April 6 To Sales a/c 1800 April 4 By J.R. a/c 2200
April 5 By Advertisement a/c 400
April 6 By Machinery a/c 800
April 6 By Bal. c/d 3300
24300 24300
April 7 By Bal. b/d 3300
Remember : Cash book never records credit transactions. So, we will not record of purchase
from sham on credit in cash book.
2nd Example
Making of Double Column Cash Book
We can also make the double column cash book. In this double column cash book, we have to record all the transactions relating to cash and discount. If we receive the money from debtor, we allow the discount. If we pay the money to creditor, we receive the discount. So, both record will also be in the double column cash book. With following example, you can understand it.
Enter the following transactions of Mohit in double column cash book :
Jan. 1 2013 : Balance of cash in hand = Rs. 3200
2 : Paid to Mohan and Sons (discount allowed Rs. 35) = Rs. 765
3 : Cash Sales = Rs. 850
4. Sales of old newspapers = Rs. 35
4 : Paid for office machinery = Rs. 2000
4 : Withdraw from Bank = Rs. 800
5 : Received from Raghav ( in full settlement of his debt of Rs. 1200) = Rs. 1150
6. Sale of Old Furniture = Rs. 600
8 : Receive from Prashant (allowed him discount Rs. 40) = Rs. 800
8 : Paid wages and salaries in cash = Rs. 1000
9 : Received from Akram khan against debt previously written off = Rs. 450
Dr. Cash Book (Double Column) Cr.
Date Receipts L.F. Discount Allowed Amount Date Payments L.F. Discount Received Amount
2013 Jan. 1 To Balance b/d 3200 2013 Jan. 2 By Mohan and sons a/c 35 765
Jan. 3 To Sales a/c 850 Jan. 4 By office machinery a/c 2000
Jan. 4 To old newpaper a/c 35 Jan. 8 By wages and salaries a/c 1000
Jan. 4 To Bank a/c 800 Jan. 9 By Balance c/d 4120
Jan.5 To Raghav a/c 50 1150
Jan.6 To Furniture a/c 600
Jan.8 To Prashant a/c 40 800
Jan.9 To Bad debts recovered a/c 450
90 7885 35 7885
Jan. 10 To Balance b/d 4120
Remember : We do not calculate the balance of discount column because discount column is not as discount account. We will again open the discount allowed account and discount received account where we will calculate the balance of discount which will go to trail balance.