Cash Book, Single And Double Column Cash Book JSS2 Business Studies Lesson Note
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CASH BOOK
A cash book is a book of accounting or ledger account used for recording cash receipts 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 payments.
It is called a single-column cash book because it has only cash on both the 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 of 31st Jan 2000, and open all necessary ledger.
Jan 1 Started business with 10,000 cash
Jan 2 Paid office expenses of 1,500
Jan 10 Bought goods worth 3,500
Jan 20 Paid rent of 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 |
DOUBLE COLUMN CASH BOOK
This is a cash book that takes care of both cash and bank. It is called a double-column cash book because it has a cash and book column on both the debit and credit side.
The cash column is used for recording cash and cheque received while the credit side is used for recording all payments made by cheque and cash received and paid into the bank.
The debit side is for receipt of cash and cheque and the credit side is for payment.
Double / Two Column Cash Book
Date Particulars F Cash Bank Date Particulars F Cash Bank
Contra Entry: This is the recording of a single entry in both the debit and credit sides of the same cash book.
Example:
Mr. More Blessing started a business with #5000 cash and #7,000 bank in June 2014.
June 3 Purchase goods by cash 2,500
June 5 Withdraw cash from bank 1000
June 6 Cash sales 1800
June 10 Receive cash from Ngozi 1200
June 15 Cash sales 1000
June 20 Paid insurance by cash 500
June 25 Paid wages by cheque 1000
Dr. Double Column Cash Book Cr
Date Particulars F Cash Bank Date Particulars F Cash Bank
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