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प्रश्न
What is cash book? Explain the types of cash book
उत्तर
Cash Book is a book of original entry.
It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order.
In the debit side of the cash book, the cash receipts are recorded in the cash column while all deposits into bank account are recorded in the bank column.
On the contrary, in the credit side of the cash book, all cash payments are recorded in the cash column, while all payments through cheques are recorded in the bank column.
Usually, it is prepared on monthly basis.
Cashbook also serves the purpose of principle book (i.e. cash account and bank account).
1. Single Column Cash Book: A single column Cash Book contains one column of amount on both sides, i.e., one in the debit side and other in the credit side.
In the single column Cash Book, only cash transactions are recorded.
In the debit side of the Cash Book, all cash receipts are recorded, while on the credit side all cash payments are recorded.
2. Double Column Cash Book: A double column Cash Book contains two columns of amount, namely cash column and bank column on both sides.
In the cash column of Cash Book, all cash receipts and payments are recorded, according to the rule of Real Accounts.
All deposits either in cash or through cheques into the bank account of the business are debited in the bank column and all withdrawals of cash and payments through cheques are credited in the bank column.
| Dr. | Cash Book | Cr. | |||||||
| Date | Particulars | L.F. | Cash Rs | Bank Rs | Date | Particulars | L.F. | Cash Rs | Bank Rs |
| Cash | (C) | - | Bank | (C) | - | ||||
3. Triple Column Cash Book: In a triple column Cash Book, there are three columns of amount namely, cash, bank and discount.
Discount allowed and discount received are recorded in the discount column.
While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque; whereas, in the credit side, discount received is recorded, along with the payments made either in cash or by issuing cheques.
4. Petty Cash Book: This book is used for recording payment of petty expenses, which are of smaller denominations like, postage, stationery, conveyance, refreshment, etc. is known as Petty Cash Book.
APPEARS IN
संबंधित प्रश्न
Briefly state how the cash book is both journal and a ledger
What do you understand by Imprest amount in petty cash book?
What is contra entry? How can you deal this entry while preparing double column cash book?
What is petty cash book? Write the advantages of petty cash book?
Enter the following transactions in a simple cash book for December 2016:
| ₹ | ||
| 01 | Cash in hand | 12,000 |
| 05 | Cash received from Bhanu | 4,000 |
| 07 | Rent Paid | 2,000 |
| 10 | Purchased goods Murari for cash | 6,000 |
| 15 | Sold goods for cash | 9,000 |
| 18 | Purchase stationery | 300 |
| 22 | Cash paid to Rahul on account | 2,000 |
| 28 | Paid salary | 1,000 |
| 30 | Paid rent | 500 |
Enter the following transaction in Simple cash book for December 2017:
| ₹ | ||
| 01 | Cash in hand | 7,750 |
| 06 | Paid to Sonu | 45 |
| 08 | Purchased goods | 600 |
| 15 | Received cash from Parkash | 960 |
| 20 | Cash sales | 500 |
| 25 | Paid to S. Kumar | 1,200 |
| 30 | Paid rent | 600 |
Record the following transactions in a bank column cash book for December 2016:
| ₹ | ||
| 01 | Started business with cash | 80,000 |
| 04 | Deposited in bank | 50,000 |
| 10 | Received cash from Rahul | 1,000 |
| 15 | Bought goods for cash | 8,000 |
| 22 | Bought goods by cheque | 10,000 |
| 25 | Paid to Shyam by cash | 20,000 |
| 30 | Drew from Bank for office use | 2,000 |
| 31 | Rent paid by cheque | 1,000 |
Prepare a double column cash book with the help of following information for December 2016:
| ₹ | ||
| 01 | Started business with cash | 1,20,000 |
| 03 | Cash paid into bank | 50,000 |
| 05 | Purchased goods from Sushmita | 20,000 |
| 06 | Sold goods to Dinker and received a cheque | 20,000 |
| 10 | Paid to Sushmita cash | 20,000 |
| 14 | Cheque received on December 06, 2010 deposited into bank | |
| 18 | Sold goods to Rani | 12,000 |
| 20 | Cartage paid in cash | 500 |
| 22 | Received cash from Rani | 12,000 |
| 27 | Commission received | 5,000 |
| 30 | Drew cash for personal use | 2,000 |
Enter the following transactions in double column cash book of M/s Ambica Traders for July 2017:
| ₹ | ||
| 01 | Commenced business with cash | 50,000 |
| 03 | Opened bank account with ICICI | 30,000 |
| 05 | Purchased goods for cash | 10,000 |
| 10 | Purchased office machine for cash | 5,000 |
| 15 | Sales goods on credit from Rohan and received cheque | 7,000 |
| 18 | Cash sales | 8,000 |
| 20 | Rohan's cheque deposited into bank | |
| 22 | Paid cartage by cheque | 500 |
| 25 | Cash withdrawn for personal use | 2,000 |
| 30 | Paid rent by cheque | 1,000 |
Prepare double column cash book from the following information for July 2017:
| ₹ | ||
| 01 | Cash in hand | 7,500 |
| Bank overdraft | 3,500 | |
| 03 | Paid wages | 200 |
| 05 | Cash sales | 7,000 |
| 10 | Cash deposited into bank | 4,000 |
| 15 | Goods purchased and paid by cheque | 2,000 |
| 20 | Paid rent | 500 |
| 25 | Drew from bank for personal use | 400 |
| 30 | Salary paid | 1,000 |
Enter the following transaction in a double column cash book of M/s.Mohit Traders for January 2017:
| ₹ | ||
| 01 | Cash in hand | 3,500 |
| Bank overdraft | 2,300 | |
| 03 | Goods purchased for cash | 1,200 |
| 05 | Paid wages | 200 |
| 10 | Cash sales | 8,000 |
| 15 | Deposited into bank | 6,000 |
| 22 | Sold goods for cheque which was deposited into bank same day | 2,000 |
| 25 | Paid rent by cheque | 1,200 |
| 28 | Drew from bank for personal use | 1,000 |
| 31 | Bought goods by cheque | 1,000 |
Prepare double column cash book from the following transactions for the year August 2017:
| ₹ | ||
| 01 | Cash in hand | 17,500 |
| Cash at bank | 5,000 | |
| 03 | Purchased goods for cash | 3,000 |
| 05 | Received cheque from Jasmeet | 10,000 |
| 08 | Sold goods for cash | 7,000 |
| 10 | Jasmeet's cheque deposited into bank | |
| 12 | Purchased goods and paid by cheque | 20,000 |
| 15 | Paid establishment expenses through bank | 1,000 |
| 18 | Cash sales | 7,000 |
| 20 | Deposited into bank | 10,000 |
| 24 | Paid trade expenses | 500 |
| 27 | Received commission by cheque | 6,000 |
| 29 | Paid Rent | 2,000 |
| 30 | Withdrew cash for personal use | 1,200 |
| 31 | Salary paid | 6,000 |
M/s Ruchi trader started their cash book with the following balances on July 2017: cash in hand ₹ 1,354 and balance in bank current account ₹ 7,560. He had the following transaction in the month of July 2017:
| ₹ | ||
| 03 | Cash sales | 2,300 |
| 05 | Purchased goods, paid by cheque | 6,000 |
| 08 | Cash sales | 10,000 |
| 12 | Paid trade expenses | 700 |
| 15 | Sales goods, received cheque (deposited same day) | 20,000 |
| 18 | Purchased motor car paid by cheque | 15,000 |
| 20 | Cheque received from Manisha (deposited same day) | 10,000 |
| 22 | Cash Sales | 7,000 |
| 25 | Manisha's cheque returned dishonoured | |
| 28 | Paid Rent | 2,000 |
| 29 | Paid telephone expenses by cheque | 500 |
| 31 | Cash withdrawn for personal use | 2,000 |
Prepare bank column cash book
Prepare petty cash book from the following transactions. The imprest amount is ₹ 2,000.
| January | ₹ | |
| 01 | Paid cartage | 50 |
| 02 | STD charges | 40 |
| 02 | Bus fare | 20 |
| 03 | Postage | 30 |
| 04 | Refreshment for employees | 80 |
| 06 | Courier charges | 30 |
| 08 | Refreshment of customer | 50 |
| 10 | Cartage | 35 |
| 15 | Taxi fare to manager | 70 |
| 18 | Stationery | 65 |
| 20 | Bus fare | 10 |
| 22 | Fax charges | 30 |
| 25 | Telegrams charges | 35 |
| 27 | Postage stamps | 200 |
| 29 | Repair on furniture | 105 |
| 30 | Laundry expenses | 115 |
| 31 | Miscellaneous expenses | 100 |
Record the following transactions during the week ending Dec.30, 2014 with a weekly imprest ₹ 500.
| January | ₹ | |
| 24 | Stationery | 100 |
| 25 | Bus fare | 12 |
| 25 | Cartage | 40 |
| 26 | Taxi fare | 80 |
| 27 | Wages to casual labour | 90 |
| 29 | Postage | 80 |
