Single column cash book

By: Rashid Javed | Updated on: October 22nd, 2021

The single column cash book (also known as simple cash book) is a cash book that is used to record only cash transactions of a business. It is very identical to a traditional cash account in which all cash receipts are recorded on left hand (debit) side and all cash payments are recorded on right hand (credit) side in a chronological order.

The single column cash book has only one money column on both debit and credit sides titled as “amount” which is periodically totaled and balanced like a T-account. As stated earlier, a single column cash book records only cash related transactions. The entries relating to checks issued, checks received, purchases discount, and sales discount are not recorded in single column cash book.

Format:

The specimen/format of a single column cash book is given below:

The purpose of five columns used on both sides of a single column cash book is briefly explained below:

  • Date: The date column of the cash book is used to record the year, month and actual date of each cash transaction. This column ensures the chronological record of each business transaction involving receipt or payment of cash.
  • Description: The description column is used to record the account titles to be debited or credited as a result of each cash transaction. A short explanation (also known as narration) of each cash transaction may also be written in this column. This column is sometime titled as “particulars”.
  • Voucher No: Voucher is a document that supports a business transaction. This column is used to record the serial number of a receipt voucher or payment voucher.
  • Posting reference: This column is used to write the page number of each ledger account named in the description column of the cash book.
  • Amount: The amount column of single column cash book is used to record the money value of each cash transaction.

Balancing a single column cash book

The single column cash book has only one money column which is totaled and balanced like a traditional T-account. At the end of each month or another appropriate period, the amount column of both sides are totaled. The difference between totals is written on the lighter side below all other entries. This difference is the closing cash balance for the current period and is usually termed as balance carried down (balance c/d). In next period, it becomes the opening cash balance and is usually termed as balance brought down (balance b/d).

Note: The debit side (receipt side) of a single column cash book is always heavier than the credit side (payment side) because we cannot pay more cash than we receive during a period.

A D V E R T I S E M E N T

Posting entries from single column cash book to ledger accounts

All entries in the cash book are periodically posted to appropriate accounts in general ledger and relevant subsidiary ledgers. The posting procedure is given below:

  1. The balance b/d and balance c/d (i.e., opening and closing balances) of the cash book are not posted.
  2. The entries on the debit side (or receipt side) of the cash book are posted to the credit side of relevant accounts in the ledger.
  3. The entries on the credit side (or payment side) of the cash book are posted to the debit side of relevant accounts in the ledger.
  4. The page numbers of the ledger accounts (i.e., account numbers) to which the entries have been posted are written in the posting reference column of the single column cash book. It makes easy to locate an account in the ledger to which an entry has been posted.

Example

The Harper Company uses a single column cash book to record all cash transactions. It engaged in the following cash transactions during the month of September 2016.

  • Sep.01: Cash in hand at start of the month $4,654.
  • Sep.02: Paid salaries to employees for the last month $3,000.
  • Sep.05: Cash received from S & Co. for a previous credit sale $2,720.
  • Sep.06: Merchandise purchased for cash $1,400.
  • Sep.07: Merchandise sold for cash $4,700.
  • Sep.10: Office furniture purchased for cash $3,080.
  • Sep.12: Stationary purchased for cash $170.
  • Sep.15: Merchandise sold for cash $9,000.
  • Sep.17: Cash paid to A & Co. for a previous credit purchase $1,780.
  • Sep.20: Merchandise purchased for cash $2,460.
  • Sep.21: Merchandise sold for cash $4,680.
  • Sep.24: Cash received from S & Co. for a previous credit sale $2,400.
  • Sep.28: Cash paid for office rent $1,600.
  • Sep.30: Merchandise sold for cash $7,200

Required: Record the above transactions in a single column cash book (simple cash book) and post entries from the cash book to the relevant ledger accounts in general and subsidiary ledgers.

Solution

Single column cash book of Harper Company:

General ledger of Harper Company:

Accounts receivable subsidiary ledger of Harper Company

Accounts payable subsidiary ledger of Harper Company

A D V E R T I S E M E N T
71 Comments on Single column cash book
  1. Ajani Olamilekan Uthman

    Thanks You Verry Much,i Really Appriciate Your Site.
    May God We Bless Who Create This Site.

    1. Oluwadaisi

      Wow I really appreciate thanks a lot may God gives you more knowledge

  2. Silu

    Best site ever continue with the good work its really helpful

  3. Abs fabregas

    what about goods sold on credit

    1. Himani Aggarwal

      The credit transactions are not recorded in the cash book.

      1. MAAZ

        IN SIGLE COLUMN CASH BOOK THE CREDIT ENTRIES ARE NOT RECORDED ,…POINT TO BE NOTED.

      2. Shakilo

        They are recorded in the sales journal (sales day book)

    2. Sadik

      That one will go into sale journal

  4. Apon ayowole Michael

    This site is awesome

    ,

  5. Faham

    “Cheque deposited into bank ” what is the entry in single column cash book

    1. MAAZ

      IN SIGLE COLUMN CASH BOOK THE CHEQUE DEPOSITED IN TO BANK ENTRIES ARE NOT RECORDED

    2. Remus Muthomi

      It is recorded the same as “Sep.05: Cash received from S & Co”. Guess your concern is the cheque details, this you record on a cheque register, and the journal description.

      1. Salmanul Faris

        Single column cash book
        cheques received from accounts receivable and without cash any bank transactions can be posted

        is it true or false ?

  6. ABHINAV

    not understood the why we are posting salarie in cr. side why not dr. side

    1. James Moi

      Payments take cash away from business thus has to be credited.Take in mind that cashbook we consider the cash inflow and outflow.Any transaction that bring in money is debited while the one that take money out is credited

  7. Abdul Karim Issah

    Very very helpful keep it up

  8. Zah RINA

    Very helpful thank you

  9. Esmatullah Khan

    Thank you so much from your good information thank you very much.

  10. Godfrey

    This is amazing since you makes me understood I appreciat your good work

  11. Usman modu

    Thumb πŸ‘ up

  12. confydora

    nice work very educating

  13. Amjad

    Where does capital goes
    Dr or Cr?

  14. MICHEAL BLESSING

    OH THAT GOOD OF YOU

  15. micheal blessing

    wonderful

  16. micheal blessing

    keep it up

  17. micheal blessing

    understanding

  18. osy

    is it possible to have a single column for the bank account assuming the business is operating using bank only

  19. CHARLES ADU

    IN FACT THIS SITE HAS REALLY HELP ME.MAY THE GOOD LORD BLESS U GUYS

    1. uknown

      and bless u too

  20. John

    This Site Has Helped Me Recall My Financial Accounting 1.
    It Is So Stupendous.
    It Is Wonderful.
    God Bless The Administrators Of This Site.

  21. Abisek

    What about the cheque received??

  22. Roushan Kumar

    Single column cash book (1.) Cash in hand 24000. (2) cash received from Babu 8000. (3) purchased good from Anil 10000. (4) sold goods for cash 20000. (5) purchased furniture for office 500. (6) rent paid 1000.

  23. Justice

    This material has been very educative. Even as a lay man in the field of accounting I perfectly understood how to prepare and manage a cash book. Thanks a lot

  24. hasnain

    WHERE SHOULD I RECORD DESCRIPTION OF ENTRIES

  25. CLINTON ASUNGA

    Thank you so much

  26. KMS

    I really like the way concepts are explained! Very helpful!

  27. Swaraj Mishra

    Cash withdrawal from bank
    Entry in single column cash Book

    1. Feyisayo Adeniji

      Is the cash book different from cash analysis book?

  28. smaihle

    the page is indeed helpful

  29. Jolayemi Sunday olumide

    This is great sit but why all the items on the credit side of the single cash book posted to the debit side of the ledger and debit side on the credit side of ledgers please expanciate

  30. Ngala owino Kevin

    Simple and clear, easy to understand. Thank you

  31. Musiliu jubril

    I remark this great site…. I assimilate things easily here πŸ‘πŸ‘πŸ‘Œβ˜ΊοΈ

  32. Asharallah Ayuba

    A Very Clear Explaination God Blissed You Guys

  33. Xtiana dinma

    Well explained in a layman’s understanding!!! Gud jo

  34. Aastha Singh

    What about the transactions of cheques received from xyz to whom goods were sold on credit ?

  35. Zviko

    Hi is loan recorded in the cash book? Also is electricity prepaid recorded in the cashbook

  36. Confibliz

    Thanks very much for this, I like the site

  37. Abubakar Suleiman

    I love this it helpful

  38. Yusuf usman

    Really appreciate may almighty God keeps you up always

  39. PRINCE GENEROUS

    God bless you for the interesting ideas given about single column cash book. I really appreciate this thank you.

  40. Ogunlola Faith

    This site is the best ever

  41. Noel matemba

    oh this site is the best ever

  42. Jey

    Good..I have used the site to teach and prepare a marking scheme ….kudos

  43. Allo Clinton

    I am very grateful thank you people very much for help.

  44. Soham Karandikar

    Thank you so much

  45. Ambe Emmanuella

    Are withdrawals done for office use and personal use posted in the cashbook?

  46. Ambe Emmanuella

    How do I record deposit into the bank and withdrawals done for personal use and office use in the ledger accoun

  47. Janet Ajik

    I like the examples interesting

  48. Clement kaite

    Thank you for the information it’s really helpful, thumb up.

  49. Williams Esther

    In single column cash book, given a question like this;
    Sold goods to John #8000 on credit
    Am I to record it?
    If yes please what side of the account?
    Dr/Cr

  50. Emily kithinji

    This is helpful thankyou to the administrators of this app

  51. Olufade Comfort

    Thanks and God bless you abundantly

  52. Abraham Lamptey

    Thanks you so much God bless you all

Leave a comment