

THE CASH BOOK IS A BOOK OF ORIGINAL
ENTRY IN WHICH CASH RECEIPT AND
PAYMENT ARE RECORDED.
THE RIGHT HAND OF THE CASH BOOK IS THE
GIVING SIDE CALLED THE CREDIT SIDE WHILE
THE LEFT HAND SIDE OF THE CASH BOOK IS
THE RECEIVING SIDE CALLED THE DEBIT SIDE
 SINGLE
COLUMN CASH BOOK
 TWO COLUMN CASH BOOK
 THREE COLUMN CASH BOOK
 PETTY CASH BOOK

SINGLE COLUMN CASH BOOK IS A BOOK USED
TO RECORD CASH TRANSACTION ONLY
DATE

PARTICULAR
FOLIO
AMOUNT
DATE
PARTICULAR
FOLIO
AMOUN
T
TWO COLUMN CASH BOOK IS A BOOK USED
TO RECORD BOTH CASH AND CHEQUE
[BANK] TRANSACTIONS.
DATE
PARTIC
ULAR
FOLIO
CASH
BANK
DATE
PARTIC
ULAR
FOLIO
CASH BANK

THREE COLUMN CASH BOOK IS AN EXTENSION
OF TWO COLUMN CASH BOOK WHICH
COMPRISES THREE ACCOUNTS NAMELY CASH,
BANK AND DISCOUNT.
FORMAT OF THREE COLUMN CASH BOOK
DATE
PARTI
CULA
R
FOLIO
CAS
H
BANK
Disc
oun
t
Allo
wed
DATE
PARTI
CULA
R
FOLI
O
CASH
BANK
Disc
oun
t
Rec
eive
d
CONTRA ENTRY IS REFERRED TO
ANY TRANSACTION THAT AFFECTS
BOTH BANK AND CASH ACCOUNT
AT THE SAME TIME E.G
 WITHDREW CASH FROM THE BANK
FOR OFFICE USE
 PAID CASH INTO BANK
 BANKED CASH
DISCOUNT IS AN ALLOWANCE OR
REBATE GIVEN TO CUSTOMER FOR
EITHER PROMPT PAYMENT OR BULK
PURCHASES. DISCOUNT IS DIVIDED
INTO TWO
 CASH DISCOUNT – FOR PROMPT
PAYMENT
 TRADE
DISCOUNTFOR
BULK
PURCHASES
 DEBIT
BOTH CASH AND CHEQUE
RECEIPT
 CREDIT BOTH CASH AND CHEQUE
PAYMENTS
 DEBIT SALES
 CREDIT
PURCHASES
 DEBIT ANY INCOME OR
COMMISSION RECEIVED
 CREDIT ANY EXPENSE






ENTER THE FOLLOWING INTO TWO COLUMN
CASH BOOK OF OLA LIMITED
1/1/12 STARTED BUSINESS WITH CASH #2000
2/1/12 PAID WAGES IN CASH 100
5/1/12 RECEIVED#1000 CHEQUE FROM SOLA
20/1/12 CASH SALES PAID DIRECTLY INTO BANK
200
31/1/12 PAID ELECTRICITY BY CHEQUE 500
DATE
PARTIC
ULAR
FOLI
O
CASH
BANK
1/1/1
2
CAPITA
L
5/1/1
2
SOLA
1000
20/1
/12
SALES
200
2000
DATE
PARTICU FOL
LAR
IO
CASH
2/1/1
2
WAGES
100
30/1/
12
ELECTRI
CITY
BAL
C/D
1/2/
12
BAL
B/D
2000
1200
1900
700
BANK
500
1900
700
2000
1200
1.
2.
3.
4.
5.
Discount allowed would appear on the (a) debit side of the
cash book (b) credit side of the cash book (c) credit side of
trading account (d) debit side of the trading account
The bank column in the cash book shows a credit balance of
£180. This means (a) a total payment of £180 (b) overdraft
of £180 (c) gross profit of £180 (d) leftover of £180 in the
bank
A trader set aside from his private fund £1500 for the
business purposes. The £1500 is (a) loan (b) capital (c)
reserve (d) drawing
___________ is allowance off invoice (a) trade discount (b)
cash discount (c) sales day book (d) discount allowed
Which of the following account is not a prime book (a) cash
book (b) purchases day book (c) purchases ledger (d)sales
day book
Bal b/f
Sales
Sola
500 bal c/d
Bal b/d
6.
7.
8.
9.
xx
xx
1000
500
4000
xx
Purchases
Rent
Salaries
600
1400
1000 Bose
4000
The balance brought forward is (a) 2000 (b) 3000 (c) 4000 (d) 5000
The balance carried down is (a) 700 (b)800 (c) 1000 (d) 1200
The balance brought forward at the beginning of new accounting period is (a)
1000 (b) 1100 (c) 1200 (d) 1300
A transaction that affects both the cash and the bank account is called (a) double
entry (b) contra entry (c) single entry (d) bank entry
10.
11.
Drawing appears on the (a) debit side of the cash book (b)
credit side of the cash book (c) credit side of trading account
(d) debit side of the trading account
A three column cash book contains columns for (a) cash
assets and liabilities (b) bank, cash and asset (c) cash, bank
and returns (d) discount, cash and bank
1.
2.
3.
State the principle of double entry
State five subsidiary books
Defines cash book
1. Write up the column cash book from the following

Nov. 1
balance b/f
£

Cash
1,050

Bank
21,640

Nov. 2
cash sales
6,050

Nov.3
took out of the cash till and paid it into the bank

Nov.4
Ola paid us cheque
2000

Discount
170

Nov.5
paid cash for stamps
600

Nov.6
received rates refund by cheque
720
•
•
•
•
•
•
•
•
•
•
•
•
Nov.8
bought goods for cash
Nov.12
paid wages in cash
Nov 14
paid motor expenses by cheque
Nov.17we paid shola by cheque
Discount
Nov.19
cash drawing
Nov.20
cash sales
Nov.22
cash purchases
Nov. 23
received loan OLATUNJI by cheque
Nov. 25
banked cash
Nov.30
paid segun by cheque
Discount
900
40
700
800
230
570
300
20
30
80
100
80

Submit the answer (s) to tutorial questions on
the day of resumption in hard copy