Cash books(1)

CASH BOOKS
1. Introduction
2. Define and explain
Cash books
Two columnar cash books
Double columnar book
Three columnar cash books
3. Review questions
1. Introduction
Cash is the most liquid resource that an entity has. Cash includes cash
and cash equivalents both in hand as well in the bank. There are
several transactions every day that cause a continuous flow of cash
between the entity and outsiders, and also within the entity itself.
Cash, being so liquid, is also the biggest moral hazard! It is easier to
commit a fraud or an error in cash transactions, as compared to any
other kind of transactions.
Cash is the lifeline of a business. It affects almost all the departments
and business segments. Proper records of cash transactions are
important not only for accounting purposes, but also to help the
financial manager in efficiently managing the business’ cash and cash
equivalents.
1. Introduction
It is obvious that cash transactions affect the performance and the
financial statements of an entity. Therefore, it is essential to know the
correct principles and procedures for recording cash transactions. The
procedures laid down have to be those which will present a fair view in
the financial statements and also protect the assets of the company.
Among cash transactions, petty cash transactions involve the maximum
handling of hard cash. The possibilities for fraud are the highest in this
case. Efficient systems and procedures have to be made in order to
control this risk. An example of such a system which minimises risk is
the imprest system.
1. Introduction
In this Study Guide we will discuss the recording of cash transactions in
the cash book and the petty cash book. As an accountant, this is
definitely a task that you will have to do at some point, so be prepared!
2. Define and explain cash book
Cash is a lifeline for a business. It affects almost all the departments
and business segments. Proper records of cash transactions are
important not only for accounting purposes, but also to help the
financial manager in efficiently managing the cash. It is obvious that
cash transactions affect the performance and the financial statements
of an entity. Therefore, it is essential to know the correct principles and
procedures for recording cash transactions. The procedures laid down
have to be those which will present a fair view in the financial
statements and also protect the assets of the company.
Now we will discuss the recording of cash transactions in the cash
book.
Cash Book
The cash book is a book of prime entry of a special kind as it is also a part of the
ledger system. Cash or bank columns serve the purpose of cash or bank accounts,
often in a ledger account. There is no need to post the transactions again in cash or
bank accounts. These columns are balanced just like a ledger account and the
closing balances are taken into a trial balance.
The main features of the cash book are as follows:
Only cash transactions are recorded in the cash book.
Transactions are recorded in the cash book in a chronological order.
The receipts side of the cash book is used to record entries which debit cash or
bank account for example: received cash from one of the customers.
The payments side is used to record entries which credit cash. For example: paid
salary by cash.
Once the transaction is entered in the cash book we have to give effect
to the respective ledger account.
For example:
When salary is paid by cash the entry would:
Dr. Salary account X
Cr. Cash account X
Post the salary in the respective ledger account and
Post the cash account in the payment side of the cash book.
The steps to record transactions in the cash book are as follows:
 The receipts side of the cash book is used to record entries which
debit the cash account or the bank account; for example, received
cash a receivable.
The payments side is used to record entries which credit either the
cash account or the bank account; for example, paid salary by cash.
However, once the transaction is entered in the cash book, the second
effect to the respective ledger account is also given. For example,
respective receivable account in case of.
Types of cash book
1. Single column for cash as well as bank transactions
If there is only one column for cash and bank transactions, the balance
brought down and carried forward will consist of cash-in-hand as well
as bank balances (especially, if there is any cash that is not yet
deposited into the bank). If all the cash collections are deposited in the
bank, the balance will consist of only the bank balance.
A proforma of a single column cash book with imaginary figures is
given below:
Summary of transactions:
Details Amount in Tshs
Cash in hand 1,000
Received from Ron 200
Paid rent 100
Sold goods for cash 200
Paid to Sam 500
Purchased furniture 500
Paid salaries 100
Rent due not yet paid 100
Amount deposited in bank 200
The single columnar cash book will be as follows:
Receipts Side Payments side
Balance b/f 1,000 Rent 100
Ron 200 Sam 500
Sales 200 Furniture 500
Bank 200 Salaries 100
Balance c/d 400
1,600 1,600
This is a cash book, therefore only the deposited cash is recorded.
Note: rent due, but not yet paid, is not shown in the cash book.
A similar account would be set up for bank account.
Example
Enter the following transactions in a simple cash book:
2006 Particulars Amount in Tshs

January 1 Cash in hand 24,000
January 4 Received from harry 6,000
January 7 Paid rent 6,000
January 8 Goods sold by cash 14,000
January 10 Paid Simone 4,000
A single cash book column will be as follows:
Debit (Receipt side) Credit (Payment side)
Jan 1 Balance b/d 24,000 Jan 7 Rent 6,000
Jan 4 Harry 6,000 Jan 10 Simone 4,000
Jan 8 Sales 14,000 Jan 31 Balance c/d 34,000
44,000 44,000
The two column cash book:
Different columns for cash and bank transactions
(a) Cash and bank transactions are recorded in the respective cash and
bank columns. The steps to record transactions in the cash book
have been explained earlier.
(b) Transactions between cash and bank are recorded as contra
transactions in the cash book with cash and bank columns.
Cash deposited Cash withdrawn
Cash deposited into the bank is recorded as a Cash withdrawn from the bank is recorded as a
payment in the cash column, and as a receipt in the payment in the bank column and as a receipt in the
bank column. cash column.
Dr. Bank account X Dr. Cash account X
Cr. Cash account X Cr. Bank account X
These contra transactions do not have to be posted into any ledger
accounts since both debit (receipt) and credit (payments) effects have
already been given in the cash and bank columns of the cash book,
which itself is also a ledger account.
A proforma of a two column cash book with imaginary figures is given
below:
Details Amount in Tshs
Annie commences business with cash 20,000
Paid into current account 19,000
Received cheque from Diana on account 600
Paid Diana & Co’s cheque into bank on the other day 600
Paid to Ron & Co by cheque 330
Received cash from cash sales 100
Paid sundry expenses in cash 50
The two columnar cash book will be as follows:
Cash book
Receipts (Dr) Cash Bank Payments (Dr) Cash Bank
Capital 20,000 Bank contra 19,000
Cash contra 19,000 Bank contra 600
Diana & Co 600 Ron & Co 330
Cash (contra) 600 Sundry expenses 50
Cash sales 100
Balance c/d 1,050 19,270
20,700 19,600 20,700 19,600
Balance b/d 1,050 19,270
The following transactions relate to Gems Trading. Enter the following transactions
in a two column cash book.
1 January cash in 30,000
5 January Paid to Rivera (Net of discount of Tshs200) 6,000
6 January Purchased goods 8,000
11 January Received from Roger (discount allowed Tshs400) 19,600
12 January Sale of goods 8,000
12 January Paid to Smith 5,900
12 January Discount received from Smith 100
21 January Paid wages 1,000
25 January Paid to Nick in full settlement of his account which shows a (Credit
Balance of Tshs8,000) 7,800.
Double Column Cash Book
Receipts (Dr.) Discount Cash Payments (Cr.) Discount Cash

allowed received
Jan 1 Balance b/d 30,000 Jan 5 Rivela 200 6,000
Jan 11 Roder 400 19,600 Jan 6 Purchases 8,000
Jan 12 Sales 8,000 Jan 12 Smith 5,900
Jan 12 Smith 100
Jan 21 Wages 1,000
Jan 25 Nick 200 7,800
Jan 31 Balance c/d 28,900
400 57,600 500 57,600
Three column or Analytical columns
Certain additional analytical columns are drawn on either side of a cash book
according to the accounting and reporting needs of each entity. These
columns are totalled and not balanced. The totals are used for the purpose
of summary postings into ledger accounts e.g. discount allowed, accounts
receivable, cash sales, sales tax on cash sales etc.
If analytical columns are maintained, instead of individual entries, only the
totals are recorded to the respective ledger accounts. For example, if
columns are maintained for accounts receivable and cash sales, the totals of
these columns will be recorded in the accounts receivable and cash sales
ledger account. Individual transactions of accounts receivable are posted in
the personal ledgers, which are not part of the double entry system.
Note:
It can be seen that only the bank and cash columns are balanced in order to
give a balance to be incorporated into the trial balance. These accounts
serve the purpose of being ledger accounts. Other analytical columns do not
function as ledger accounts. They simply give totals which can be posted to
the individual ledger accounts.
This kind of cash book has been explained with the help of the following
example.
Analytical cash book with discount in a multi-columnar cash book
The accounting effects of discounts are given by using periodic totals of the
specified columns of the cash book.
Example
Record the following transactions in the cash book:
 Deposited in bank Tshs5,000
Paid to trade payable through cheque Tshs2,000,
Discount received Tshs200
Cash received deposited in bank Tshs1,000
Cheque received from Trade receivable Tshs2,000,
Discount allowed Tshs200
Received from trade receivables Tshs7,000,
Discount allowed Tshs700 and
 Cash withdrawn from bank Tshs2,000
Cash book
Receipts (Dr.) Cash Bank Discount Payments (Cr. ) Cash Bank Discount
allowed Received
Balance b/d Contra 5,000 Bank contra 5,000
Cash contra 1,000 Trade payable 2,000 200
Trade receivable 2,000 200 Bank contra 1,000
Trade receivable 7,000 700 Cash contra 2,000
Bank contra 2,000 Balance c/d 3,000 4,000
9,000 8,000 900 9,000 8,000 200
Balance b/d 3,000 4,000
Journal entry to record Discount allowed
Dr. Discount allowed Tshs900
Cr .Trade receivable (Total) Tshs900
Journal entry to record Discount received
Dr. Trade payables Tshs200
Cr Discount received Tshs200
These columns need not be balanced. They are only to be totalled.
They should be posted to the respective ledger accounts.
Note:
Discount allowed, being an expense is always debited and
Discount received, being an income is always credited.
Another example of an analytical cash book is given below.
Example
Record the following transactions in the cash book of Montek Traders:
05 October 20X6 Cash purchases Tshs2,000. The invoice value was
Tshs2,300; however the seller allowed a trade discount.
 06 October 20X6 Cash sales of Tshs3,000. Sales tax charged on this was
Tshs300.
07 October 20X6 A customer paid Tshs6,000 against the outstanding of
Tshs6,200. A discount of Tshs200 was allowed to the customer for early
payment.
31 October 20X6 Paid Tshs4,000 to a supplier instead of Tshs4,350 A
discount of Tshs350 was allowed to the customer for early payment.
Answer
Montek Traders Cash book (extract – only receipts related data.
Date Receipts Amount Receipts Discount
Receivables Cash sales Sales tax on
allowed cash sales
06/10/20X6 Sales 3,000 3,000 300
Sales tax 300
07/10/20X6 Receivable 6,000 6,000 200
Total 9,300 6,000 200 3,000 300
The amount of Tsh200 for discount allowed is not added to the cash book
total, but recorded here so discounts can be posted to the nominal ledger.
Posting to general ledger
The accounting entries will be:
Dr. Cash 9,300
Cr. Receivables 6,000
Cr. Sales 3,000
Cr. Sales tax payable 300
Being the cash receipts for October
Dr. Discounts expense Tshs200
Cr. Receivables Tshs200
Being the discount given for early payment. Note: Trade discount (TD)
is not recorded in cash book.
That’s why the trade discount of Tshs300 (Tshs2,300 - Tshs2,000) is not
recorded in cash book.
Montek Traders
Cash book (extract – payments related data only)
Payments
Date Payment Amount Payables Cash purchases Discount received
05/10/20X6 Purchases 2,000 2,000
31/10/20X6 Payables 4,000 4,000 350
Total 6,000 4,000 2,000 350
Trade discount is not recorded.
Posting to general ledger
Dr. Purchases Tshs2,000
Dr. Payables Tshs4,000
Cr. Cash Tshs6,000
Being cash payments for October
Dr. Payables Tshs350
Cr. Discounts received
Tshs350 Being discount received for early payment
Example
The following are certain transactions from 11 August, 20X7
Receipt of Tshs500 from Bela – receivable
Payment to Sheena Tshs850 - payable
Payment to Rony Tshs1,300 - payable
Payment of telephone bill Tshs350
Cash sales Tshs5,000
Sale of old computer Tshs2,000
Electricity bill payment Tshs250
Purchase of new laptop Tshs3,125
You are required to record these transactions in the cash book.
Cash book receipt
Date Narration Total Amount Account Receivable Cash sales Other amount
11/08/20X7 Accounts receivable - Bela 500 500
Sales 5,000 5,000
Computer 2,000 2,000
Total 7,500 500 5,000 2,000
Cash book payment
Date Narration Total amount Accounts payable Cash purchases Other
11/07/20X7 Accounts payable - Sheena 850 850
Accounts payable - Rony 1,300 1,300
Telephone 350 350
Electricity 250 250
Laptop 3,125 3,125
Total 5,875 2,150 0 3,725
Expenses that are occasionally incurred are entered in the Other’s

column.
3. Petty cash book
Petty cash transactions
There could be certain transactions such as payments for postage, local
transport or food and refreshments for the staff that may not be paid
for by cheque. These payments have to be made for in cash due to
their small amounts or the lack of systems at the receiver’s side to
process the amounts.
As indicated by the literal meaning of the word ‘petty’ i.e. insignificant
or small, petty cash transactions mean small cash transactions. Petty
cash refers to the cash that is held by the entity for small payments of
cash.
3. Petty cash book
Need for separate records for petty cash transactions
Even though an individual transaction is of a petty amount, there are several
of these transactions in an accounting period. A further analysis of these
transactions into different account headings is needed for the purpose of
accounting. Hence, it makes sense to keep a separate analytical petty cash
book. It is not feasible to add these columns to the main cashbook as it
would become unmanageable.
Administratively, the task of handling petty cash is entrusted to a separate
person. Since the person is responsible for giving an account of the petty
cash handled by him, it is desirable that the person maintains a separate
petty cash book. This will enable him to control the physical cash as well as
perform and maintain analysis. If proper records are not kept for petty cash
transactions, the cash balance may be abused or stolen.
3. Petty cash book
1. Methods of maintaining petty cash transaction
Primarily two methods are used to record petty cash transaction, which
include: Imprest system Non-imprest system (a) Imprest system The petty
cash is usually maintained on the basis of the imprest system. An imprest
system means a system where initially the petty cashier is given a fixed
amount of cash and subsequently the amount of expenses is reimbursed.
How does the imprest system of petty cash work? The petty cashier has to
make all petty cash payments from the cash given to him. This amount of
cash given to the cashier is called the “float”. At the end of a pre-determined
period or on the balance reaching a critical minimum, the amount of
expenses are reimbursed or topped up so as to restore the balance to the
imprest amount. The ‘float’ is decided in such a manner that it will cover
average petty cash expenses during a given period, for example, a week.
3. Petty cash book
This system provides better security as it minimises the amount of cash in
the hands of the cashier.
EXAMPLE
On 1 July 20X7, a petty cashier was given cash of Tshs500, being an imprest
or a float. During the month of July 20X7, he spent Tshs350 on various
accounts. On 31 July, a cheque for Tshs350 drawn on the company’s bank
account was handed over to him. He withdrew cash from the bank and put it
into the cash box. The balance in his cash box was restored to Tshs500.
Cash is spent against petty cash vouchers. Once the amount is reimbursed to
the petty cashier, he hands over the vouchers to the main cashier, in return
for the reimbursement of the related vouchers. At any point of time, the cash
in hand plus the total of vouchers not yet reimbursed must be equal to the
imprest or float amount.
3. Petty cash book
In the example stated above, the situation before reimbursement is:
PARTICULARS AMOUNT IN TZS

Cash in hand of petty cashier 150
Total of vouchers not reimbursed 350
Must be equal to the float or imprest 500
Imprest system
Note:
Remember to practice this example thoroughly in order to get the feel of
how transactions are posted into the petty cash book.
3. Petty cash book
Post the following entries and also prepare a petty cash ledger account.
Date Particulars Amount
01 January 2007 Receipt of cash 200,000
02 January 2007 Postage 20,000
09 January 2007 Transport 10,000
01 February 2007 Cash receipt 78,000
3. Petty cash book
Petty cash book
Receipts amount Date Particular Total amount Postage amount Transport amount
200,000 01/01/2007 Cash
02/01/2007 Postage 20,000 20,000
09/01/2007 Transport 10,000 10,000
13/01/2007 Transport 12,000 12,000
18/01/2007 Postage 9,000 9,000
23/01/2007 Postage 16,000 16,000
30/01/2007 Transport 11,000 11,000
200,000 78,000 45,000 33,000
78,000 01/02/2007 Cash
3. Petty cash book
Postings to ledger accounts will be as follows:
Dr. Postage account Tshs45,000
Dr. Transport account Tshs33,000
Cr. Petty cash Tshs78,000
Being petty cash expenses posted to respective accounts.
3. Petty cash book
DEBIT CREDIT
01/01/2007 Cash 200,000 31/01/2007 Payments 78,000
31/01/2007 Balance c/d 122,000
200,000 200,000
01/02/2007 Balance b/d 122,000
01/02/2007 cash 78,000
200,000
3. Petty cash book
(b) Non-imprest system
A non-imprest system is a petty cash system which does not follow the
imprest system. There is therefore no amount fixed as float. The amount
which is reimbursed and the timing of reimbursement are decided by people
operating the system. The petty cashier may or may not have the same
closing balance of petty cash as opening balance.
2. Analysing petty cash transactions
The petty cash book contains small transactions of various types. Accounting
for these requires an analysis of the transactions according to different
account heads. Usually an analytical petty cash book contains several
columns. Each column takes care of an expense which is often repeated.
3. Petty cash book
Expenses encountered occasionally are entered in the ‘Others’ column
of the petty cash book. A further analysis of the ‘Others’ column is
needed at the end of the period so as to record the transactions in the
relevant ledger account. The total of each specific column is recorded
in the ledger account it represents. Please see the example that
follows.
Whether or not an imprest method is followed, there will be no
difference in the analytical part of the petty cash book. The only
difference will be on the receipts side of the petty cash book. Under an
imprest system, there will be receipts for reimbursement of expenses
at fixed intervals. When the amount is reimbursed the petty cash
balance will be restored to the amount predetermined as float
3. Petty cash book
3. Recording from the petty cash book
At the end of the period, a journal entry for payments is made. For the
purpose of making this journal entry, the totals of the various columns
are used. The amounts are recorded in the respective ledger accounts
with the help of this entry.
Alternatively, amounts may be recorded in the respective ledger
accounts directly from the total column. The respective account is
debited and the petty cash account is credited. When reimbursement is
received, the petty cash account is debited and the cash account is
credited.
3. Review questions
Question 1
Tim, owns a diner on the interstate freeway. As he gets diners around
the clock he deposits cash every evening at five, just before the bank
closes for business. Last night, he deposited Tshs3,120. How would Tim
record this transaction in his cash book?
A. Debit Bank; Credit Cash
B. Debit Bank; Credit Bank ( )
C. Debit Cash; Credit Bank
D. Debit Cash; Credit Cash
3. Review questions
Question 2
Prepare a two column cash book from the following transactions:
Details Amount
Business commenced with cash 45,000
Goods purchased from John and paid by cheque 5,000
Goods sold for cash 2,000
Cheque received from Dolly & Co 8,000
Cash received deposited into bank 8,000
Salaries paid through cheque 500
Sales to CC& Co and amount received through cheque which is deposited in bank on the same day 1,500
Cash with drawn form bank 2,000
Sundry expenses paid in cash 200
Review questions
Question 3
Dunia Manoti is a sole proprietor who started his business six months ago.
The following are his transactions for the month of July 2015.
July 1 Cash in hand Tshs600,000 and cash at bank Tshs9,670,000.
July 2 Received cash from Samuel Tshs1,900,000 and allowed discount of
Tsh100,000.
July 4 Paid Jazar by cheque Tshs800,000 and received discount of Tshs30,000.
July 6 Purchased Goods and paid by cheque Tshs2,100,000.
July 8 Deposited with bank Tshs2,100,000.
July 10 Sold goods to Anita on credit Tshs1,100,000
July 12 Sold goods & received payment by cheque Tshs900,000
Review questions
July 15 Received a cheque from Anita in full settlement of his account Tshs1,050,000.
July 17 Withdrawn from bank for office use Tshs900,000.
July 19 Purchased goods from K & Co.Tsh3,000,000 Paid K & Co. by cheque Tshs2,900,000 and
discount received Tshs100,000.
July 20 Paid telephone charges by cash Tshs100,000.
July 23 Paid Kimwaki by cheque Tshs684,000 and received discount of Tshs16,000.
July 24 Cash sales 1,900,000
July 26 Received cheque from Antony and sent to the bank Tsh480,000 and allowed discount of
Tshs20,000.
July 27 Purchased a new machinery for office use by cheque Tshs4,000,000
July 28 Bank intimated that Antony’s cheque has been dishonored Tshs480,000
July 31 Deposited with bank Tshs600,000
July 31 Bank charges as shown in the pass book Tshs26,000.
Review questions
REQUIRED:
Prepare a three columnar Cash Book for the month of July 2015.
Review questions
Question 4.
Anna is looking after the petty cash system of Choice Ltd. At the beginning of
January, she was given Tshs250,000 for petty cash. Out of this amount she
spent Tshs153,000 during the month. It is the policy of Choice Ltd that the
petty cash balance should be maintained at Tshs250,000. What amount
should be reimbursed to her so that her petty cash balance can be restored
to Tshs250,000?
A. Tshs153,000
B. Tshs250,000
C. Tshs97,000
D. None of the above
Review questions
Question 5
Which one of the following is incorrect?
A. The petty cash book can be maintained on imprest as well as non-
imprest systems.
B. Maintaining the petty cash book enables the petty cashier to
control the physical cash.
C. A petty cash book is maintained so as to separate the task of
making small payments.
D. Petty cash transactions are significantly big transactions which
require a separate book
Review questions
Question 6
While deciding on the petty cash float, which of the following should
be considered?
A. It should be enough to cover average expenditure during the
period.
B. It should be as low as possible.
C. Reimbursement / availability of cash to cover costs in emergencies.
D. All of the above
Review questions
Question 7
Furaha Co. Ltd operates its petty cash account on the imprest system. It
is maintained at a figure of Tshs1,800,000 on a monthly basis. During
the month ending 31 July 2011, the following petty cash transactions
took place:
Date Petty Cash inflows and outflows during the month Amount in Tshs
July 1 Cash received from cashier 1,800,000
July 2 Boat fare – 4 trips for 3 officers. Ticket price is Tshs.10,000 per trip 120,000
July 2 Counter books 50,000
July 3 Drawing pins 60,000
Review questions
Date Petty Cash inflows and outflows during the month Amount in Tshs
July 07 Photocopy paper 150,000
July 09 Trade journals 80,000
July 12 Bus fare 45,000
July 14 Correction fluid 20,000
July 17 Typewriter ribbons 29,000
July 18 Paper clips 10,000
July 19 Photocopier repairs 250,000
July 22 Newspaper 70,000
July 22 Parcel postage 68,000
July 25 Marker pens 95,000
July 26 Train fare – 2 trips 1 officer, Tshs.20,000 per trip 40,000
July 27 Display decorations 86,000
Review questions
Date Petty Cash inflows and outflows during the month Amount in Tsh
July 28 Cello tape 34,000

July 30 Typewriter repair 42,000
July 30 Taxi fares 64,000
August 01 Cash received to restore imprest ?
Required:
(a) Open and post the company’s analysed petty cash book for the period of
July 2011, with analysis columns for expenditure on travelling, stationery,
postage, miscellaneous and repairs.
(b) Open the ledger accounts to complete the double entry for the analysis
columns: travelling, stationery, postage, miscellaneous and repairs in the
general ledger
Review questions
Question 9.
The following were the opening balances for ABC Company:
May 1, 2021 Cash balance 29,000 and bank balance Tsh654,000.
May 1, 2021 Accounts receivables: B King Tsh129,000, N Campbell
Tsh280,000 and D Shand Tsh40,000.
May 1, 2021 Accounts payable: U Barrow Tsh60,000, A Allen Tsh440,000 and
R Long Tsh100,000.
May 2, 2021 B King pay us by cheque, having deducted 2.5% cash discount
Tsh117,000.
May 8, 2021 We pay R Long his account by cheque. Deducting 5% cash
discount Tsh95,000.
Review questions
May 11, 2021 Withdrew Tsh100,000 from for business use.
May 16, 2021 N Campbell pays us his account by cheque, deducting
2.5% cash discount Tsh273,000.
May 25, 2021 We paid office expenses in cash Tsh92,000.
May 28, 2021 D Shand pas us in cash after having deducted 5% cash
discount.
May 29, 2021 We pay U Barrow by cheque less 5% cash discount
Tsh57,000.
May 31, 2021 We pay A Allen by cheque less 2.5% cash discount
Tsh429,000.
Review questions
Required:
Prepare a three column cash book and other related ledger accounts.
Question 10.
The cash book for a pine furniture shop from the following details:
January 1, 2018 Started in business with capital in cash Tsh1,000,000.
January 2, 2018 Paid rent by cash Tsh230,000.
January 3, 2018 G Broad lent us Tsh2,000,000, paid by cheque.
January 4, 2018 We paid J Fine by cheque Tsh860,000.
January 5, 2018 cash sales 180,000.
January 7, 2018 F Love paid us by cheque Tsh34,000.
Review questions
January 9, 2018 We paid A Moore in cash Tsh92,000.
January 11, 2018 Cash sales paid direct into the bank Tsh151,000.
January 15, 2018 P Hood paid us in cash Tsh96,000.
January 16, 2018 We took Tsh100,000 out of the cash till and paid into the
bank account.
January 19, 2018 We repaid R onions Tsh500,000 by cheque.
January 22, 2018 Cash sales paid direct into the bank Tsh122,000.
January 26, 2018 Paid motor expenses by cheque Tsh75,000.
January 30, 2018 Withdrew Tsh200,000 cash from the bank for business use.
Review questions
January 31, 2018 Paid wages in cash Tsh320,000.
Required:
Prepare a two cash column cash for a pine Shop during the month of
January 2018.

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CASH BOOKS

2006 Particulars Amount in Tshs

Receipts (Dr.) Discount Cash Payments (Cr.) Discount Cash

Expenses that are occasionally incurred are entered in the Other’s

PARTICULARS AMOUNT IN TZS

July 28 Cello tape 34,000

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