Classwork Series and Exercises {Business Studies – JSS2}: The Cash Book

Business Studies, JSS 2, Week 5

Topic: The Cash Book

Contents

1. Meaning of book keeping
2. Meaning of cash book
3. Rule of cash book
4. Types of cash book
5. Meaning of Contra Entries

Meaning of Book keeping

Book keeping can be define as the art of recording business transaction . These recordings are done from source documents such as the invoice and credit note.

Meaning of Cash Book

Cash book means the cash account. It is part of the ledger which is kept by a cashier

Cash account is an account in which all receipts and cash payments transaction are recorded. The cash book has two sides namely, the debit side which is on the left hand side where all cash receipts are recorded , the credit side is on the right hand side where all cash payments are recorded.

The rule of preparing cash account

• Debit what comes in
• Credit what goes out

Types of Cash Book

1. The single column cash book
2. The double column cash book
3. The three column cash book:

Meaning of Contra Entries

Contra Entries, is a situation whereby money may be withdrawn from the bank for office use or part of the cash in hand may be paid into the bank. These are called contra entries of the two column cash book.

Test and Exercise

1. Define contra Entries
2. List the types of  cash book
3. State the rules in preparing cash account
4. Define book keeping

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