1. TOPIC : THE CASH BOOK
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

2. Types of cash book SINGLE COLUMN CASH BOOK TWO COLUMN CASH BOOK
THREE COLUMN CASH BOOK
PETTY CASH BOOK

3. FORMAT OF DIFFERENT CASH BOOK
SINGLE COLUMN CASH BOOK IS A BOOK USED TO RECORD CASH TRANSACTION ONLY
TWO COLUMN CASH BOOK IS A BOOK USED TO RECORD BOTH CASH AND CHEQUE [BANK] TRANSACTIONS.
DATE
PARTICULAR
FOLIO
AMOUNT

4. FORMAT OF TWO COLUMN CASH BOOK
DATE
PARTICULAR
FOLIO
CASH
BANK

5. Three Column Cash Book
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
PARTICULAR
FOLIO
CASH
BANK
Discount Allowed
Discount Received

6. Terminologies
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

7. 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 DISCOUNT- FOR BULK PURCHASES

8. RULES GOVERNING FOR DEBITING AND CREDITING THE CASH BOOK
DEBIT BOTH CASH AND CHEQUE RECEIPT
CREDIT BOTH CASH AND CHEQUE PAYMENTS
DEBIT SALES

9. CREDIT PURCHASES
DEBIT ANY INCOME OR COMMISSION RECEIVED
CREDIT ANY EXPENSE

10. EXAMPLE 1 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

11. SOLUTION OLA LIMITED TWO COLUMN CASH BOOK
DATE
PARTICULAR
FOLIO
CASH
BANK
1/1/12
CAPITAL
2000
2/1/12
WAGES
100
5/1/12
SOLA
1000
30/1/12
ELECTRICITY
500
20/1/12
SALES
200
BAL C/D
1900
700
1200
1/2/12
BAL B/D

12. Tutorial questions
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

13. Tutorial questions Bal b/f xx Purchases 1400 Sales 1000 Rent 600
Sola Salaries Bose bal c/d xx
Bal b/d xx
The balance brought forward is (a) 2000 (b) 3000 (c) (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) (b) 1100 (c) (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

14. Tutorial questions
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

15. Tutorial questions State the principle of double entry
State five subsidiary books
Defines cash book

16. Tutorial questions 1. Write up the column cash book from the following
Nov. 1 balance b/f £
Cash 1,050
Bank ,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
Discount
Nov.5 paid cash for stamps 600
Nov.6 received rates refund by cheque 720

17. Tutorial questions Nov.8 bought goods for cash 900
Nov.12 paid wages in cash
Nov 14 paid motor expenses by cheque 570
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 800
Nov. 25 banked cash
Nov.30 paid segun by cheque
Discount

18. Thank you
Submit the answer (s) to tutorial questions on the day of resumption in hard copy