Single Column Cash Book: Definition, Format, and Features [Notes with PDF]
In this article, we will learn in-depth about the single-column cash book including its definition, format, features, procedure for preparing a single-column cash book, and much more.
What is a Single Column Cash Book?
A single-column cash book is a book with just one column on the debit and credit side of the amount. It records all the cash receipts on the debit side and all the cash payments on the credit side.
Businesses that don’t deal with banks instead prefer cash transactions, keep single column cash book. Comparatively, Small size business prepares single column cash book.
Since bank transactions are secure and increasing gradually, the number of such businesses and keeping accounts under single column cash book are progressively decreasing.
Features of Single Column Cash Book
The features of single column cash book are as follows:
- The style of a single column cash book is just like the ledgers- ‘T’ format. The table is divided into Debit and Credit, where the debit side records the cash receipts transactions and credit records the all-cash payments transactions.
- A Single column cash book has ten (10) columns, where the debit and credit side having five (5) columns each.
- Generally, the single-column cash book denotes the debit balance since the payments cannot be greater than the receipts but can be equal.
- A single column cash book’s balance determination procedure is identical to the “T” format of a ledger.
- If any discount is allowed or earned, it is recorded in the journal proper during the settlement of debts and credits, not in a single column cash book.
Format of Single Column Cash Book
Single Column Cash Book
| Debit | Credit | ||||||||
| Date | Receipts | R.N. | L/F | Amount | Date | Payments | V.N. | L/F | Amount |
Procedure for Preparation of Single Column Cash Book
The procedure for preparation of a single column cash book is as follows:
1.Opening Balance: The opening balance of cash should be written on the single column cash book’s debit side.
2. Date: Cash transactions have to be written in chronological order.
3. Cash Transaction: It records all the cash receipts on the debit side and all the cash payments on the credit side.
4. Explanation: Since the cash book is called the primary book, it is better to record the transaction with proper explanation, but it is not mandatory.
5. Check and Bank deposit: A single column cash book must write the receipt of any check on the debit side and the bank deposit on the credit side.
6. Discount: If any discount is allowed or received, it is recorded in the journal proper, not in a single column cash book.
7. Ancillary information: Other information columns should be filled in appropriately as per the cash book table.
8. Balancing: The balance is drawn at the end of the stated period after the cash transactions are properly recorded in the single-column cash book according to the double-entry system. Usually, the cash book denotes the debit cash balance or surplus at the end of the specified time, which is treated as an opening balance for the next period.
You can also read:
- What is the difference of cash book and cash account?
- Cash book questions and answers
- What is cash book? and what are the features of cash book?
Key takeaways
- A single column cash book has one money column on each side and records only cash receipts and payments.
- Receipts go on the debit side and payments on the credit side.
- The balance is the cash in hand, a debit balance.
- Entries are posted to the ledger: receipts are credited to the giver’s account and payments are debited to the receiver’s account.
Quick check
1. Opening cash is 500, receipts are 2,300 and payments are 1,900. What is the closing balance?
500 + 2,300 − 1,900 = 900 (debit balance).
2. A 400 payment to a supplier is recorded on which side of the cash book, and what happens in the ledger?
The credit side of the cash book. In the ledger, the supplier’s account is debited 400.
Frequently asked questions
Does a single column cash book include bank transactions?
No. It records only cash. Bank transactions are recorded in a separate bank account or in a cash book with a bank column.
Why do receipts go on the debit side?
Cash is an asset, and an increase in an asset is a debit.
Is the cash book a book of original entry?
Yes. Transactions are first recorded in it, and it also serves as the cash ledger account.
Related: Cash book overview · Petty cash · Ledger
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