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Illustrations · Illustration 1
Q.

From the following transactions made by M/s Kuntia Traders, prepare the single column cash book:

Date (2017)DetailsAmount (₹)
Sept. 01Cash in hand40,000
Sept. 02Deposited in bank16,000
Sept. 04Received from Puneet in full settlement of claim of ₹12,00011,700
Sept. 05Cash paid to Rukmani in full settlement of claim of ₹7,0006,850
Sept. 06Sold goods to Sudhir for cash14,800
Sept. 06Paid quarterly insurance premium on policy for proprietor's wife2,740
Sept. 07Purchased office furniture8,000
Sept. 07Purchased stationery1,700
Sept. 07Paid cartage120
Sept. 10Paid Kamal, discount allowed by him ₹2006,800
Sept. 11Received from Gurmeet, discount allowed to him ₹50014,500
Sept. 12Amount withdrawn for household use5,000
Sept. 14Electricity bill paid1,160
Sept. 17Goods sold for cash23,000
Sept. 21Bought goods from Kamal on cash basis17,000
Sept. 24Paid telephone charges2,300
Sept. 26Paid postal charges520
Sept. 28Paid monthly rent4,200
Sept. 29Paid monthly wages and salary8,250
Sept. 29Bought goods for cash11,000
Sept. 30Sold goods for cash15,600
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✓ Free question

Receipts go on the debit side, payments on the credit side. Both sides foot to ₹1,19,600; the difference — cash in hand ₹27,960 — is the Balance c/d, brought down on Oct. 01.

Concept

A single column cash book is both a journal and a ledger account for cash. Cash coming in is debited and cash going out is credited. Discount allowed or received is only noted in the narration of a single column cash book — it is not posted in the cash column. The cash book always closes with a debit (or nil) balance, because you cannot pay out more cash than you hold.

Solution — Books of Kuntia Traders, Cash Book

DateReceiptsL.F.Amount (₹)DatePaymentsL.F.Amount (₹)
2017 Sept. 01Balance b/d40,0002017 Sept. 02Bank16,000
Sept. 04Puneet11,700Sept. 05Rukmani6,850
Sept. 06Sales14,800Sept. 06Drawings2,740
Sept. 11Gurmeet14,500Sept. 07Office furniture8,000
Sept. 17Sales23,000Sept. 07Stationery1,700
Sept. 30Sales15,600Sept. 07Cartage120
Sept. 10Kamal6,800
Sept. 12Drawings5,000
Sept. 14Electric charges1,160
Sept. 21Purchases17,000
Sept. 24Telephone charges2,300
Sept. 26Postal charges520
Sept. 28Rent4,200
Sept. 29Wages & Salary8,250
Sept. 30Purchases11,000
Sept. 30Balance c/d27,960
Total1,19,600Total1,19,600
Oct. 01Balance b/d27,960

Points to note

  • The insurance premium for the proprietor's wife (₹2,740) and the household withdrawal (₹5,000) are both Drawings — private payments, credited to the cash book.
  • Cash sales appear on the debit side as Sales; cash purchases on the credit side as Purchases.
  • The ₹200 discount received from Kamal and the ₹500 discount allowed to Gurmeet are not entered in the cash column of a single column cash book.
✓Final answer

Both sides of the cash book total ₹1,19,600; the closing cash in hand carried down is ₹27,960 (brought down on Oct. 01).

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