Cash Book Example. Frank Wood’s Business Accounting I
ZIMSEC O Level Principles of Accounts: Books of Original Entry: Cash Book Entries to record Cash Deposited into the Bank
If a business receives cash from its customers and
The cash is later paid into (deposited) into the bank
The receipt of the cash is debited to the cash column on the date received, the credit entry being in the customer’s personal account.
The Cash account is credited (this is shown by recording the amount in the cash column of the Cash Book on the credit side to show a decrease in the asset of Cash and
The Bank account is debited and this is shown by recording a debit in the Bank column of the Cash Book.
Consider the following:
There was a cash receipt of $300 from M Dube on 6 June 2015 which was followed by the banking on 9 June 2015 of $130 of this transaction would appear in the Cash Book as follows:
Cash Book
Date
Details
Cash ($)
Bank
Date
Details
Cash ($)
Bank
6 June
M Dube
300
9 June
Bank
130
9 June
Cash
130
Where the entire cash amount that was received is deposited into the bank the Cash entry is omitted all together and treated as if a cheque was received.
For example instead of only $130 being deposited into the bank in the example above the entire amount is banked.
The following entries are made in the Cash Book instead:
