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## Balance Sheet \$type=three\$count=6\$author=hide\$comment=hide\$label=hide\$date=hide\$show=home\$s=0

Like journal, cash book is made also on the basis of double entry system. In this book, we debit all the receipts because it increases our cash which is the part of our current asset. We credit all the payments  because it decreases our current asset (cash). Following cash book examples will help you to understand the cash book deeply.

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.

3rd Example

Making of Triple Column Cash Book

In modern business, we complete almost all the transactions through bank. We pay off cash through check or online bank transfer. We also collect money through check. So, it is necessary to show one more column in cash book except cash column and discount column. With following example, you can understand it deeply.

Write out the following transactions in the Triple column cash book of Sitaram:
2013
Jan. 1 Sitaram commences his business with cash = Rs. 30000
Jan 2 He pays into bank current account = Rs. 20000
Jan. 3 He receive cheque from kulwant rai on account = Rs. 1000
Jan. 7 He pays kulwant rai's cheque into bank = Rs. 1000
Jan. 10 He pays Radha Sharan by Cheque = Rs. 1980
and receive discount = Rs. 20
Jan. 11 He receive cheque from Wasim = Rs. 970
and allow him discount = Rs. 30
Jan. 15 He makes sales for cash = Rs. 2000
Jan. 17 Cash deposited into bank = Rs. 3000
Jan. 19 He purchased a motor car by cheque = Rs. 6500
Jan. 20 He purchased goods by cheque = Rs. 1500
Jan. 22 He pays jajoo traders in cash = RS. 2000
and receives discount = Rs. 100
Jan. 29 He withdraws from bank for office use = Rs. 500
Jan. 30 He purchases furniture by cheque = Rs. 1200
Jan. 30 Cheque received from sham endorsed to Ram = Rs. 5000

 Dr. Cash Book (Triple Column) Cr. Date Receipts Discount allowed Cash Bank Date Payments Discount received Cash Bank 2013 Jan. 1 To Capital 30000 2013 Jan. 2 By Bank (C) 20000 Jan. 2 To Cash (C) 20000 Jan. 7 By Bank (C) 1000 Jan. 3 To Kulwant Rai 1000 Jan. 10 By Radha sharan 20 1980 Jan. 7 To Cash (C) 1000 Jan.  17 By Bank (C) 3000 Jan.11 To Wasim 30 970 Jan. 19 By Motor Car 6500 Jan.15 To Sale 2000 Jan. 20 By Purchase 1500 Jan.17 To Cash (C) 3000 Jan. 22 By Jajoo traders 100 2000 Jan.29 To Bank (C) 500 Jan. 29 By Cash (C) 500 Jan. 30 By Furniture a/c 1200 Jan. 30 By Balance C/d 7500 13290 30 33500 24970 120 33500 24970 May 1 To Balance b/d 7500 13290

Remember : a) If we deposited money into bank or withdraw money from bank we have to show such amount both cash column in one side and bank column in other side. So, these are the contra entries and its double entry has completed in cash book. We show c just front of entries.

b) Before showing discount column, we have to show ledger folio column both side, due to shortage of space, we did not show.

c) When we get a cheque but we have endorsed to some other person, it is recorded in cash book because this is neither receipt nor payment from cash or our bank. Its record will be done through journal entry. So, we will not show jan. 30 endorsement transaction in cash book.

Related : Accounting Examples

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1. Thanks dear Gladtr Howard for reading this content.

1. If a cash discount is given to someone and paid by cheque. What is the transaction in cash book , to bank or cash

1. The answer in no entry as simple cash book does not involve any bank transaction

2. GREAT JOB!!!!! YOU'VE REALLY HELPED ME TO GET MORE DETAIL UNDERSTANDING .THANKS

3. What is the cashbook entries for sold goods

4. Building aquired by cheque .. how will we mention it in double column(discount and cash) cash book? By bank or by building?

5. What is the entry of settle a debt and received 5% discount (in cash book)

6. Thanks.very helpful 4 me

7. Sold goods for cash 10000 cash book

1. It means cash comes in so it would be entered in the debit column of simple cash book

8. Sold goods for cash 10000 cash book

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