Format & free template
Cash book format
A cash book records every rupee that comes in and goes out of the cash box, in date order, with the balance at the end of each day. It is the first book a shop or office should keep correctly.
Types of cash book
- Single column: only cash. Receipts on the left (debit), payments on the right (credit), or both in one running list with a balance column.
- Double column: cash and bank side by side, so a deposit of cash into bank appears in both (a contra entry).
- Petty cash book: small office expenses paid from a fixed float, topped up weekly. See petty cash management.
Most small businesses today keep a running-balance layout, which reads more easily than the old two-sided one.
Sample cash book format
Figures are made up but add up. Download CSV opens in Excel or Google Sheets as a starting template; Print blank template gives the same layout with the amounts left empty.
Cash book — November 2026 · Sharma Traders · single-column cash book · amounts in ₹
| Date | Particulars | Voucher no. | Receipt | Payment | Balance |
|---|---|---|---|---|---|
| 01-11-2026 | Opening balance | – | 18,500 | ||
| 01-11-2026 | Cash sales (counter) | R-201 | 12,400 | 30,900 | |
| 02-11-2026 | Tea and refreshments | P-88 | 650 | 30,250 | |
| 03-11-2026 | Received from Sharma Stores | R-202 | 8,000 | 38,250 | |
| 04-11-2026 | Deposited into bank (contra) | C-14 | 25,000 | 13,250 | |
| 05-11-2026 | Freight paid to transporter | P-89 | 1,800 | 11,450 | |
| 06-11-2026 | Salary advance — Ramesh | P-90 | 3,000 | 8,450 | |
| Total / closing balance | 38,900 | 30,450 | 8,450 |
What to put on it
- Business name and period
- Date
- Particulars (from whom received / to whom paid)
- Voucher or bill number
- Ledger or account head
- Receipt amount
- Payment amount
- Running balance
- Opening balance for the day
- Closing balance for the day
- Cash counted and difference, if any
- Signature of the person in charge
Worked example: one day at a shop
| Date | Particulars | Voucher | Receipt ₹ | Payment ₹ | Balance ₹ |
|---|---|---|---|---|---|
| 05-11-2026 | Opening balance | 12,400 | |||
| 05-11-2026 | Cash sales (bills 2210–2236) | CS | 28,650 | 41,050 | |
| 05-11-2026 | Received from Kapoor Stores | R-118 | 6,000 | 47,050 | |
| 05-11-2026 | Freight paid to transporter | P-071 | 1,850 | 45,200 | |
| 05-11-2026 | Tea and office expenses | P-072 | 340 | 44,860 | |
| 05-11-2026 | Deposited in bank | C-019 | 35,000 | 9,860 |
The closing balance of ₹9,860 should match the notes and coins counted in the box. If it does not, find the difference the same day; next week it will be impossible.
Rules that keep the cash book honest
- Write every entry the same day, with a voucher or bill number.
- Count cash and match the book every evening; the person counting signs the day's balance.
- Keep a receipt or a signed voucher for every payment, however small.
- Never let the balance go negative; a negative cash balance means an entry is missing.
- Deposit surplus cash in the bank instead of keeping large amounts.
Cash limits to keep in mind
Income-tax law restricts some cash dealings: receipts of large amounts in cash from one person, and business expenses paid in cash above a set limit per day may be disallowed. These limits are set by law and can change, so check incometax.gov.in or ask your CA before paying or accepting large sums in cash. Cash sales to consumers still need a bill like any other sale.
Cash book in Tally
TallyPrime keeps the cash book automatically from Receipt, Payment and Contra vouchers that use the Cash ledger; the Cash/Bank Book report shows the day-wise balance. Recording cash sales as Sales vouchers with Cash as the party keeps the cash book and the sales register in step. The Day Book shows all vouchers of a day if you need to trace an entry.
Cash with salespeople and branches
Where salespeople collect cash on routes, or a branch keeps its own cash, give each a separate cash ledger, such as Cash with Ramesh or Cash at Kota branch. Their collections go into that ledger; when they hand cash to the main office, a contra entry moves it to the main cash. This shows at any time how much cash is lying with whom, and stops collections from disappearing between the market and the office.
Common mistakes
- Owner's personal expenses paid from shop cash without an entry under drawings.
- Cash sales entered as one round figure at month end.
- Bank deposits entered in the bank book but not taken out of the cash book.
Questions people ask
What is the difference between a cash book and a cash memo?
A cash memo is the bill given for a cash sale. The cash book is the record of all cash received and paid.
Is a cash book a journal or a ledger?
Both. It is a book of original entry like a journal, and its balance works as the cash account in the ledger.
How often should the cash book be balanced?
Daily. Match the balance with the cash counted before closing.
What is a contra entry in the cash book?
A movement between cash and bank, such as depositing cash or withdrawing it. In a double-column cash book it appears on both sides.
Should cash sales be entered bill by bill?
Bill-wise is best. If that is not practical, enter a daily total with the bill number range so it can be traced.
What if the cash in the box is less than the book balance?
Recheck the day's entries and vouchers first; most differences are a missed payment entry. If it remains, record it as a cash shortage with the reason and look at who handled cash that day.
This page is general information for Indian businesses, not tax or legal advice. GST rules, limits and formats change by notification — check cbic-gst.gov.in or gst.gov.in, or ask your CA.
