Page 3 - NOTES- CASH BOOK

Recording of Transactions - II 101

Nov. 27 Sold goods to Kamal for cash 18,200
Nov. 30 Paid monthly rent 2,500
Nov. 30 Paid salary 3,500
Nov. 30 Deposited in bank 8,000

Roopa Traders
Cash Book
Dr. Cr.
Date Receipts L.F. Amount Date Payments L.F. Amount
Rs. Rs.
2017 2017
Nov. 01 Balance b/d 30,000 Nov. 08 Insurance 6,000
Nov. 04 Gurmeet 12,000 Nov. 13 Furniture 13,800
Nov. 16 Sales 28,000 Nov. 17 Purchases 17,400
Nov. 27 Sales 18,200 Nov. 20 Stationery 1,100
Nov. 24 Rukmani 12,500
Nov. 30 Rent 2,500
Nov. 30 Salary 3,500
Nov. 30 Bank 8,000
Nov. 30 Balance c/d 23,400
88,200 88,200
Dec.01 Balance b/d 23,400

Posting of the Single Column Cash Book
As evident from figure 4.1, the left side of the cash book shows the receipts of
the cash whereas the right side of the cash book shows all the payments
made in cash. The accounts appearing on then debit side for the cash book
are credited in the respective ledger accounts because cash has been received
in respect of them. Thus, in our example, an entry ‘cash received from Gurmeet’
appears on the debit side of the cash book conveys that the cash has been
received from Gurmeet. Therefore, in the ledger, Gurmeet’s account will be
credited by writing ‘Cash’ in the particulars column on the credit side. Similarly,
all the account names appearing on the credit side of the cash book are debited
as cash/cheque has been paid in respect of them. Now, notice, how the
transactions in our example are posted to the related ledger accounts:

2018-19