Cash Book Example. Frank Wood's Business Accounting I

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 $130 of this transaction would appear in the Cash Book as follows:
Cash Book
DateDetailsCash ($)BankDateDetailsCash ($)Bank
6 JuneM Dube3009 JuneBank130
9 JuneCash130
  • 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 $130 being deposited into the bank in the example above the entire amount is banked.
  • The following entries are made in the Cash Book instead:
Cash Book
DateDetailsCash ($)BankDateDetailsCash ($)Bank
9 JuneM Dube300
To access more topics go to the Principles of Accounts Notes.