Recording of Transactions – II | Class 11 Accountancy Notes

Posting of Single Column Cash Book

Posting from the single column cash book to ledger accounts is a crucial step in the accounting cycle. The left side (debit side) of the cash book shows cash receipts, which means cash has been received from various sources. The accounts appearing on the debit side of the cash book are credited in the respective ledger accounts because the business has received cash from these accounts. For example, if cash is received from a debtor, the debtor's account is credited. Conversely, the right side (credit side) of the cash book shows cash payments, meaning cash has been paid to various parties. The accounts appearing on the credit side of the cash book are debited in the ledger because the business has paid cash to these accounts. This systematic posting ensures that the ledger accounts reflect the true financial position of the business. The cash book itself is not posted to any ledger account as it serves the dual purpose of journal and ledger for cash transactions.

📊 Diagram: figure 4.1, the left side of the cash book shows the receipts of

🧪 Activity: No specific activity in this section.

🔗 Connection: Leads to the study of Double Column Cash Book which records both cash and bank transactions.

Table on page 3 (5×10)

| Dr. C Date Receipts L.F. Amount Date Payments L.F. Amount 2017 2017 Nov. 01 Balance b/d 30,000 Nov. 08 Insurance 6,000 Nov. 04 Gurmeet 12,000 Nov. 13 Furniture 13,800 Nov. 16 Sales 28,000 Nov. 17 Purchases 17,400 Nov. 27 Sales 18,200 Nov. 20 Stationery 1,100 Nov. 24 Rukmani 12,500 Nov. 30 Rent 2,500 Nov. 30 Salary 3,500 Nov. 30 Bank 8,000 Nov. 30 Balance c/d 23,400 88,200 88,200 Dec.01 Balance b/d 23,400 Posting of the Single Column Cash Book As evident from figure 4.1, the left side of the cash book shows the receipts o the cash whereas the right side of the cash book shows all the payment made in cash. The accounts appearing on then debit side for the cash boo are credited in the respective ledger accounts because cash has been receive in respect of them. Thus, in our example, an entry ‘cash received from Gurmee appears on the debit side of the cash book conveys that the cash has bee received from Gurmeet. Therefore, in the ledger, Gurmeet’s account will b credited by writing ‘Cash’ in the particulars column on the credit side. Similarl all the account names appearing on the credit side of the cash book are debite as cash/cheque has been paid in respect of them. Now, notice, how th transactions in our example are posted to the related ledger accounts: | | | | | | | | | r. |

| | Date | Receipts | L.F. | Amount | Date | Payments | L.F. | Amount | | | | 2017 Nov. 01 Nov. 04 Nov. 16 Nov. 27 Dec.01 | Balance b/d Gurmeet Sales Sales Balance b/d | | 30,000 12,000 28,000 18,200 | 2017 Nov. 08 Nov. 13 Nov. 17 Nov. 20 Nov. 24 Nov. 30 Nov. 30 Nov. 30 Nov. 30 | Insurance Furniture Purchases Stationery Rukmani Rent Salary Bank Balance c/d | | 6,000 13,800 17,400 1,100 12,500 2,500 3,500 8,000 23,400 | |

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Table on page 4 (17×10)

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | |

| | | | | | 2017 Nov.04 | Cash | | 12,000 | | | Sales Account Dr. C Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Nov. 16 Cash 28,000 Nov. 27 Cash 18,200 Insurance Account Dr. C Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Nov. 08 Cash 6,000 Furniture Account Dr. C Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Nov. 13 Cash 13,800 Purchases Account Dr. C Date Particulars J.F. Amount Date Particulars J.F. Amount 2017 Nov. 17 Cash 17,400 Stationery Account Dr. C Date Particulars J.F. Amount Date Particulars J.F. Amount | | | | | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | | | | | 2017 Nov. 16 Nov. 27 | Cash Cash | | 28,000 18,200 | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Nov. 08 | Cash | | 6,000 | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Nov. 13 | Cash | | 13,800 | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Nov. 17 | Cash | | 17,400 | | | | | |

| | Date | Particulars | J.F. | Amount | Date | Particulars | J.F. | Amount | | | | 2017 Nov. 20 | Cash | | 1,100 | | | | | |