Page 21 - NOTES- CASH BOOK

114 Accountancy

Conveyance Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2017
May 31 Petty cash 349

Stationery Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2017
May 31 Petty cash 390

Miscellaneous Expenses Account
Dr. Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
Rs. Rs.
2017
May 31 Petty cash 302

4.1.4 Balancing of Cash Book
On the left side, all cash transactions relating to cash receipts (debits) and on
the right side all transactions relating to cash payments (credits) are entered
date-wise. When a cash book is maintained, a separate cash book in the
ledger is not opened. The cash book is balanced in the same way as an account
in the ledger. But it may be noted that in the case of the cash book, there will
always be debit balance because cash payments can never exceed cash receipts
and cash in hand at the beginning of the period.
The source document for cash receipts is generally the duplicate copy of
the receipt issued by the cashier. For payment, any document, invoice, bill,
receipt, etc., on the basis of which payment has been made, will serve as a source
document for recording transactions in the cash book. When payment has been
made, all these documents, popularly known as vouchers, are given a serial
number and filed in a separate file for future reference and verification.
Illustration 1
From the following transactions made by M/s Kuntia Traders, prepare the single column
cashbook.

2018-19