The Cash Book is used to record the receipt and payment of money by the business in the form of cash, or through the business bank account. It contains the cash and bank accounts.
Columns are set up for:
–The Date
–Details
Entries are made for the other account to enter to complete double entry
–Folio
The reference is entered for the book and page number for the other account to complete double entry
–Discount Allowed
This is an incentive for speedy settlement of credit sales. All Discount Allowed merely listed here.
–Discount Received
This is an incentive for speedy settlement of credit Purchases. All Discount Received merely listed here.
–Cash and Bank Receipts
Types of Transactions Recorded:
Cash product sales / fees
Cash collected on customer accounts
Any other receipt (source) of cash
–Cash and Bank Payments
Types of Transactions Recorded:
Cash paid for expenses
Cash payments to our suppliers on account or cash purchases
Cash purchase of supplies
Any other cash payment
The following Cash Book transactions are entered below:
2009
May 1 Balances brought forward for Cash $100 and Bank $2 000
May 2 Cash sales $250. paid directly into the bank
May 3 Bought motor van for cash $200
May 5 Cash sales $ 250
May 8 Paid rent by cheque $150
May 10 Paid wages by cheque $120
May 18 Received cheque of $90 from debtor B.Butler, Discount Allowed $10
May 19 Paid cheque $200 to creditor C. Bare. Discount Received $20
May 22 Received cheque of $50 from debtor S.Combs, Discount Allowed $5
May 24 Paid cheque $30 to creditor V. Bryan, Discount allowed $30
May 24 Withdrew cash from the bank $20 for personal use
May 28 Cash of $20 was deposited to the bank account
