r18 The Single Column Cash Book has one column of amount on each side. All cash receipts are recorded on the debit left-hand) side and all cash payments are recorded on credit (right-hand) side. In fact, it is nothing but a Cash Account. Hence, there is no need to open Cash Account in the ledger. Posting from the debit (receipt) side of the Cash Book is done to the credit side of concerned accounts and from the credit (payment) side of the Cash Book to the debit side of concemed accounts. Rs. Balancing the Cash Book: The Cash Book is balanced in the same manner as a ledger account. To verify the accuracy of the entries made and to confirm the authenticity of cash balance, it should be balanced daily. The balance as per Cash Book must tally with the actual cash in hand. In the Cash Book, the total of amount column of the debit side always exceeds the total of credit side. As such, the Cash Book always shows a debit balance, since we cannot pay more than we have with us. At the end of the period, the balance of the Cash Book is placed on the credit side by writing "By Balance c/d" and then the totals are shown on both side in one straight line. The total of each side should be the same. Illustration 1. Enter the following transactions in the Cash Book of Mr. Nikhil. 2006 March 1 Mr. Nikhil commenced business with Cash 6,500 March 3 Bought goods for cash 685 March 4 Paid to Mohan March 6 Deposited in the bank 4.000 March 6 Purchased office furniture on cash 465 March 9 Sold goods for cash 3,000 March 12 Paid wages in cash 120 March 13 Paid for stationary March 15 Sold goods for cash March 17 Paid for miscellaneous expenses March 19 Received cash from Tarlok 485 March 21 Withdrew for domestic use 250 March 22 Paid salary 400 March 25 Paid rent March 28 Paid electricity bill March 29 Paid for advertising March 31 Paid into bank 95 40 2,500 45 90 35 40 2,500