In Cashbook, we will record the all-cash transaction of the business. This book keeps a record of all cash payments and cash receipts. it is the book of original entries because first of all, we record the all-cash transaction in this book and then posted these transactions into the various ledger accounts. In this article, we will discuss the only first type of cash book i.e. Single Column Cash Book.
What is the Single Column Cash Book?
It is very simple because it is similar to the cash account. The transactions related to cash are recorded in the single column cash book. it has only a single column of cash on both sides. The Debit side of the cash book shows all receipts and the credit side shows all the payment made.
The transactions related to the receipt of cash are recorded on the debit side of the single column cash book and the transactions related to the payment of cash are recorded on the credit side of the cash book.
Format of Single Column Cash Book:-
The format of the single column cash book is explained as under:
Explanation of all columns:
1. Date:
The date of the transaction is written in this column —in the first row, we will write the year till it will not change and in the subsequent rows, write the name of the month followed by the actual date.
2. Particulars:
In this column, the name of the opposite account is written (the second aspect of cash transaction). Below is written the narration of the transaction.
3. Voucher Number (V. NO.):
The voucher number for each item of receipt and payment is also written. A voucher is necessary for each item of receipt and payment. Generally, a voucher has a serial number and this number is written in this column (V. No).
4. L.F. (Ledger Folio):
The page number of the Ledger where the concerned (opposite ) account has been opened, is written in this column. This will help to locate the account from the Ledger. It may be noted that in a Ledger account J.F. is written as the reference, while in a Cash Book L.F. is written.
5. Amount:
The amount of the transaction is recorded in this column. The amount of cash received is recorded on the debit side in the amount column and the amount of cash paid is recorded on the credit side in the amount column.
Example of Single Column Cash Book: –
Ex No. 1: –
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- 01/04/17 Started a business with cash Rs 50,000/-
- 04/04/17 Goods purchase worth Rs 10,000/-
- 07/04/17 Rent paid for the building Rs 1,000/-
- 09/04/17 Wages paid for Rs 2,500/-
- 11/04/17 Sold goods worth Rs 5,000/-
- 12/04/17 Purchase goods from Ram & sons Rs 4,000/-
- 14/04/17 Commission paid to Rohan Rs 100/-
- 16/04/17 Labour charges paid for Rs 250/-
- 18/04/17 Furniture purchase for Rs 2,500/-
- 21/04/17 Sold goods worth Rs 2,500/- to Ramesh.
- 25/04/17 Freight paid to Rs 300/-.
- 29/04/17 An owner withdraw cash from the business for personal use Rs1,000.
Solution:-
Note
Transaction Dated 12/04/17 & 21/04/17 not recorded in cash book because these are credit business transactions but we can record only cash transactions in this type of book.
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