DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : K.HANUMANTHA RAO
Designation : Head of Section
Branch : Commercial & Computer Practice
(CCP)
Institute : GPW / Guntur
Year/Semester : I Year
Subject : ACCOUNTANCY-I
Subject Code : CCP102
Topic : CASH BOOK
Duration : 50 Mts
Sub Topic : Simple Column Cash Book

Teaching Aids : PPT,CCP102.51

ANIMATIONS 1
Objectives :

At the end of the period, the student would

be able to :

 Prepare Simple Column Cash Book

CCP102.51 2
Recap of the simple cash Book :
 Small Traders maintains Simple Cash Book
 ONLY CASH transactions are recorded in this
book

 Also called single column cash book

 Cash Balance ascertained DAILY

 It is also called “Single Column Cash Book”

CCP102.51 3
Known to unknown :

 Can you tell after recording transactions in

Journal where cash Transactions are Posted
 Cash Transactions are posted in a separate
book called Cash Book

CCP102.51 4
Proforma of Simple Cash Book :

Dr. Cr.
Date Particulars L.F Amount Date Particulars L.F Amount
No Rs. No. Rs.

CCP102.51 5
 Remember these Points Before
Preparing Simple Column Cash Book

CCP102.51 6
 Record all cash Receipts on the Debit side/Left
hand side of the simple Cash book.
 Record all cash payments on the Credit side/Right
hand side of the simple cash book

CCP102.51 7
How to enter the transactions in
Simple Cash Book

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 Steps :
 First read the transaction
 Think whether Cash comes into the business or
goes out of the business
 If cash comes into the business, record Cash
received in amount column on the debit side of
the simple cash book
 Record the Date of the transaction in date column
 Record in particulars column from whom the cash
is received/cause of Receipt

CCP102.51 9
 Steps contd.:
 If cash goes out of the business, record Cash paid
in amount column on the credit side of the simple
cash book.
 Record the Date of the transaction in date column.
 Record in particulars column to whom the cash is
paid/cause of payment.
 Follow the above steps for every transaction.
 Balance the Simple Cash Book

CCP102.51 10
Example 1: Prepare simple cash book of Sri Anand
from the following particulars.

2007

July 1 Commenced business with Rs.20,000

July 1 Goods purchased Rs.6,000

July 3 Sales Rs.3,000

July 6 Purchased furniture Rs.4,000

July 10 Advertisement expenses Rs.200

CCP102.51 11
July 15 Credit Sales to Ramu is Rs.1,000

July 18 Cash from Ramu Rs.600

July 22 Cash from Ramu Rs.4,000

July 25 Rent paid Rs.2,000

July 25 Wages paid Rs.300

July 30 Cash deposited into bank Rs.6,000

CCP102.51 12
Simple cash book of Sri Anand :
Dr. Cr.
Date Particulars L Amount Date Particulars L Amount
F Rs. F Rs.

2007 2007Jul 1 By purchases 6,000

July 1 To Capital 20,000 July 6 By Furniture 4,000
Account July 10 By
Advertisement 200
July 3 To sales 3,000 July 25 By Rent 2,000
July 25 By Bank 6,000
July 18 600 July 25 By Wages 300
To Ramu
July 22 To Ramu 4,000 9,100
--------- July 30 By Balance -----------
c/d
27,600 27,600
--------- -----------

9,100
Aug 1 To Balance
b/d
CCP102.51 13
Summary :

 All Cash Receipts are to be Recorded on the

Debit side of the Simple Cash Book

 All Cash Payments are to be Recorded on the

Credit side of the Simple Cash Book

CCP102.51 14
Quiz :

1. Cash paid to Ramu recorded on

a) Debit Side

b) Credit Side

c) None of the above

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2. Cash received from Venu recorded on

a) Debit Side

b) Credit Side

c) None of the above

CCP102.51 16
Frequently Asked Questions :
1. Prepare a Simple Cash Book from the following particulars: Rs.
1997 Dec. 1 Business started with cash 8,000
1997 Dec. 2 Cash Sales 1,000
1997 Dec. 4 Sold goods to Mr.X on credit 2,000
1997 Dec. 5 Rent paid in cash 1,000
1997 Dec. 10 Paid Cash to Mr. Y 2,400
Received discount 100
1997 Dec. 12 Furniture Sold (on cash basis) 800
1997 Dec. 14 Cash Purchases 300

1997 Dec. 15 Received cash from James 1,000

1997 Dec. 20 Paid for expenses 200
1997 Dec. 24 Paid for Advertisement 540
1997 Dec. 29 Drawings 500
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Assignment :

1. State the procedure for entering transactions

in simple cash book.
2. Cash Book is both Book of Primary and
Secondary entry – Discuss.

CCP102.51 18
Thank You

CCP102.51 19