Prepare a single column cash book for that month, given the transactions.

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Here is the single column cash book for Davidson Ltd. for January 2024:

Set up the single column cash book format.
A single column cash book has two sides: the debit side for receipts and the credit side for payments. Each side includes columns for Date, Particulars, and Amount.
Record the opening cash balance and all cash receipts on the debit side.
The opening cash balance on January 1 is N4,800. Cash sales on January 20 are N3,200. Cash received from May on January 29 is N6,300. Cash received from Pat on January 31 is N7,400.
Record all cash payments on the credit side.
Cash paid for purchases on January 8 is N3,000. Cash paid for rent on January 28 is N5,000. Cash paid to John O. on January 29 is N6,000.
Calculate the total receipts and total payments.
Total Receipts (Debit side) = N4,800 + N3,200 + N6,300 + N7,400 = N21,700
Total Payments (Credit side) = N3,000 + N5,000 + N6,000 = N14,000
Determine the closing cash balance.
Closing Balance = Total Receipts - Total Payments
Closing Balance = N21,700 - N14,000 = N7,700
Complete the cash book by balancing it and bringing down the balance for the next period.
$\begin{array}{|l|l|r|l|l|r|} \hline \multicolumn{3}{|c|}{\textbf{Debit (Receipts)}} & \multicolumn{3}{|c|}{\textbf{Credit (Payments)}} \\ \hline \textbf{Date} & \textbf{Particulars} & \textbf{Amount (N)} & \textbf{Date} & \textbf{Particulars} & \textbf{Amount (N)} \\ \hline \text{Jan 1} & \text{Balance b/d} & 4,800 & \text{Jan 8} & \text{Purchases} & 3,000 \\ \text{Jan 20} & \text{Sales} & 3,200 & \text{Jan 28} & \text{Rent} & 5,000 \\ \text{Jan 29} & \text{May} & 6,300 & \text{Jan 29} & \text{John O.} & 6,000 \\ \text{Jan 31} & \text{Pat} & 7,400 & \text{Jan 31} & \text{Balance c/d} & 7,700 \\ \hline & \textbf{Total} & \textbf{21,700} & & \textbf{Total} & \textbf{21,700} \\ \hline \text{Feb 1} & \text{Balance b/d} & 7,700 & & & \\ \hline \end{array}$
The closing cash balance for January 2024 is N7,700.

Prepare a single column cash book for that month, given the transactions.

Step-by-step solution

Set up the single column cash book format.

Record the opening cash balance and all cash receipts on the debit side.

Record all cash payments on the credit side.

Calculate the total receipts and total payments.

Determine the closing cash balance.

Complete the cash book by balancing it and bringing down the balance for the next period.

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