Page 30 - Business Studies

Business Studies for Secondary Schools

The cash book includes every money the bills), rent and workers’ salaries. Figure
business owner receives in cash receipts 3.1 shows an example of a simple cash
from sales and customer payments. It book for a small retail business owner.
also consists of every money the business The cash receipts are recorded on the left-
owner spends, such as cash payments for hand side and cash payments on the right-
purchases of stock, payment for utilities hand side.
FOR ONLINE READING ONLY
(electricity, water and telecommunication

CASH BOOK FOR A SMALL RETAIL BUSINESS

Cash receipts Cash payment
Date Particulars Amount Date Particulars Amount
(TShs) (TShs)
January 1 Opening 70,000 January 2 Rent 50,000
balance

January 3 Sales 20,000 January 5 Electricity 6,000
and water bill

January 4 Cash from 22,000 January 6 Stock 37,000
Lulu
January 6 Sales 12,000
January 7 Sales 17,000 January Closing 48,000
31 balance

141,000 141,000

February 1 Opening 48,000
balance

Figure 3.1: A simple cash book for a small retail business

Recording business transactions in a Exercise 3.1
cash book is crucial for a small business
owner as it helps to track the business’s On your birthday, you get a total of
daily cash flow. Balancing the cash book TShs 52,000 in cash from your parents,
regularly enables the business owner to grandparents and some of your relatives
develop a financial plan and budget and as a gift. In the meantime, you got back
detect errors that might have mistakenly TShs 4,700 that you had given to your
occurred. friend as a loan. Assume you spent

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Business Studies Form 2.indd 24 03/10/2024 16:07