The cash book is a book of account which is used to record all money received and all
money paid out within a period of time. A cashbook is a book in which all cash transactions
are recorded. Note that credit transactions are not recorded in the cashbook.
Classes of cashbook
There are four main categories of cashbook. They are:
1 .The single-column cashbook
This is concerned only with cash receipts and cash payments.
2.The double-column cashbook
The double column cashbook records cash and cheque receipts and payments. It has an
additional column for ‘bank’.
3 The three-column cashbook The three-column cashbook covers cash and
cheque receipts and payments as well as cash discounts given and received. Hence, it has
extra columns for cash, bank and discount.
4 The petty cashbook
This category of cashbook deals with minor expenses or payments. This unit will consider
only the first two classes or categories. The other two will be considered in units two and
three of this theme.
Started business with cash
Bought goods by cash
Paid for stationery
Sold goods for cash
Received cash from John
Enter the following transactions in the cashbook of
Boluwatife Enterprise for the month of January 2010.