Balancing of Single Column Cash Book
The cash book is balanced similar to any other account. The sums of the receipt (debit side) column will all the time be bigger than the sum of the payment column (credit side). The dissimilarity will be written on the credit side as “By Balance c/d”. In the beginning of the next period, to show the cash balance in hand, the balance amount is recorded in the debit side as “To balance b/d”.
Example: Enter the following transactions in a single column cash book of Mr. XYZ