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

More from Cash book (explanations):
A D V E R T I S E M E N T
71 Comments on Single column cash book
    1. 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. Single column cash book
        cheques received from accounts receivable and without cash any bank transactions can be posted

        is it true or false ?

    1. 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

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  2. 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.

  3. 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

  4. 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

  5. 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

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