Simple Cash Book: Format MCQs Quiz | Class 9
This quiz is for Class IX students studying Elements of Book-Keeping & Accountancy (Code 254), focusing on Unit 6: Recording and Posting of Cash Transactions. It covers the essential structure and principles of a single column cash book, including recording receipts and payments. Answer all questions, submit your quiz to see your score, and download a PDF of your answers for review.
About the Simple Cash Book (Single Column)
The Simple Cash Book, also known as a Single Column Cash Book, is a fundamental book of accounts used to record all cash transactions of a business. It serves a dual purpose: it is both a book of original entry (like a journal) and a book of final entry (like a ledger). All cash receipts are recorded on one side, and all cash payments are recorded on the other, allowing for easy tracking of the cash balance.
Key Concepts of the Single Column Cash Book
- Principle: It follows the principle of a real account: “Debit what comes in, Credit what goes out.” Therefore, all cash received is debited, and all cash paid out is credited.
- Debit Side (Receipts): The left-hand side of the cash book is the Debit (Dr.) side. It is used to record all inflows of cash, such as capital introduced, cash sales, and money received from debtors.
- Credit Side (Payments): The right-hand side is the Credit (Cr.) side. It is used to record all outflows of cash, such as cash purchases, payment of expenses (rent, salaries), and payments to creditors.
- No Credit Transactions: Only transactions involving the actual receipt or payment of cash are recorded. Credit purchases, credit sales, and depreciation are not entered in the cash book.
Format of a Simple Cash Book
A Simple Cash Book has two identical sides: a Debit side for receipts and a Credit side for payments. Each side has the following columns:
| Dr. (Receipts) | Cr. (Payments) | ||||||
|---|---|---|---|---|---|---|---|
| Date | Particulars | L.F. | Amount | Date | Particulars | L.F. | Amount |
| (Date of Receipt) | (Source of Receipt) | (Ledger Folio) | (Amount Received) | (Date of Payment) | (Purpose of Payment) | (Ledger Folio) | (Amount Paid) |
Explanation of Columns:
- Date: The date on which the transaction occurred.
- Particulars: The name of the account in respect of which cash has been received or paid.
- L.F. (Ledger Folio): The page number of the ledger where the respective account is posted. This column is filled during the posting process.
- Amount: The actual amount of cash received or paid.
Balancing the Cash Book
At the end of a period (e.g., a month), the cash book is balanced to find the cash in hand. The steps are:
- Total the amounts on the Debit (Receipts) side.
- Total the amounts on the Credit (Payments) side.
- The total of the Debit side will always be greater than or equal to the total of the Credit side, as a business cannot spend more cash than it has.
- The difference is the closing balance (“Balance c/d”). This balance is written on the Credit side to make the totals of both sides equal.
- This closing balance becomes the opening balance (“Balance b/d”) for the next period, written on the Debit side.
Quick Revision Points
- A Simple Cash Book only records cash transactions.
- Receipts are always recorded on the Debit (left) side.
- Payments are always recorded on the Credit (right) side.
- It acts as both a journal and a ledger for cash transactions.
- The balance of a cash book can never be credit; it will either be debit or zero.
Practice Questions
1. If a business starts with a cash capital of Rs. 50,000, on which side of the Simple Cash Book will it be recorded?
2. A company pays Rs. 5,000 for office rent in cash. Which account will be written in the ‘Particulars’ column on the credit side?
3. What does ‘L.F.’ stand for and what is its purpose?
4. Why are credit sales of Rs. 10,000 not recorded in the Simple Cash Book?
5. If total receipts are Rs. 25,000 and total payments are Rs. 18,000, what is the closing balance and where is it written initially to balance the book?
