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One-column cash book

One-column cash book has one column on the left side for debit entries and one column on the right side for credit entries. All the incoming cash is written up on the debit side and all outgoing cash is recorded on the credit side.

The bookkeeper will usually record the entries in the cash book in the following sequence:

  • The first line is the opening balance brought forward from the previous period. It appears on the debit side. If it is on the credit side, an error has been made and correction should be carried out to transfer it to the debit side.
  • The first column is for date. The date for the opening balance has to be the first day of the month.
  • Transactions or names of debtors or creditors are then recorded in chronological order in the next column either on the debit or credit side depending on whether they involve receipt or payment of cash.
  • Next column is the folio column which enables cross-reference between the cash book and the ledgers. The number of the ledger page where the account is posted to from a cash book entry is noted in this folio column.
  • The last column records the amounts received from the transactions that take place or from other sources. The cash book records only the cash received even if the amount received is partial payment. It does not record the total value of the transaction.
  • At the end of a period, the cash book is balanced to determine the closing balance which is then carried down (c/d) to the next period.

Postings made to the ledger

All entries made in the debit and credit sides of the cash book are posted to their respective accounts in the ledgers. The debit entries in the cash book are posted to the credit side of the ledger accounts, and credit entries to the debit side of the accounts in the ledgers. When this is done correctly, the debit and credit sides of the ledgers will be equal to each other. This is verified by the trial balance which lists the closing balances of all the ledger accounts.



A simple one-column cash book

Date Particulars Folio Cash Date Particulars Folio Cash
20XX $ 20XX $
Jan 01 Balance b/d 6,400 Jan 02 Purchases 1,400
Jan 16 Joan & Arc 2,200 Jan 11 Factory rent
1,500
Jan 21 Sales 2,300 Jan 19
Fixtures & Fittings
1,400
Jan 28 Sales 2,100 Jan 20
Bonanza Bros
2,000
Jan 31 Balance c/d 6,700
13,000 13,000


Sales Ledger

Joan & Arc

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 16 Cash 2,200


General Ledger

Sales

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 21 Cash 2,300
Jan 28 Cash 2,100


Purchases

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 02 Cash 1,400


Factory Rent

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 11 Cash 1,500


Fixtures & Fittings

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 19
Cash 1,400


Purchases Ledger

Bonanza Bros

Date Particulars Folio Amount
Date Particulars Folio Amount
20XX
Jan 20
Cash 2,000

abc


 

Akbar




1991
Jan. 16


By Cash

$
3,000

Sales Account

Last Updated (Friday, 03 September 2010 16:27)