**Solutions of Chapter 9 Books of Original Entry - Cash Book of S.C. Sharma**
**Cash Book**
- The cash book is a book of original entry in which all cash transactions of a business are recorded.
- It serves as a record of all cash receipts and payments made by the business.
**Solutions**
**1. Opening Balance**
- The first step in preparing the cash book is to record the opening balance of cash on hand at the beginning of the accounting period.
**2. Cash Receipts**
- Record all cash receipts in the cash book under the receipts column.
- This includes cash sales, cash received from debtors, loans, etc.
**3. Cash Payments**
- Record all cash payments in the cash book under the payments column.
- This includes payments for expenses, purchases, salaries, etc.
**4. Balancing the Cash Book**
- At the end of the accounting period, total the receipts and payments columns.
- Calculate the closing balance by subtracting the total payments from the total receipts.
**5. Double Entry System**
- Every transaction recorded in the cash book must have a corresponding entry in another account, following the double-entry system of accounting.
**6. Reconciliation**
- Reconcile the closing balance of the cash book with the actual cash on hand to ensure accuracy.
By following these steps and principles, S.C. Sharma can maintain an accurate and reliable cash book for their business.