The Farm Cashbook
Chapter Twenty-Seven
Syllabus topic 5, "Types of Farm Records- Specimen. (Muster roll, Overseer’s diary, Cultivation register, Cashbook, Stock book, Issue register, Receipt register, Labour requisition book, Attendance register, Deadstock, Ration book, Peon book, General register)."
Pages 62 to 63 of 110
In one line
The farm cashbook is the book of original entry for every rupee received and every rupee paid, with a running balance that must at all times equal the cash in hand and at bank.
Of the thirteen records MU names, this is the only one that is a book of account in the ordinary sense. It posts to the ledger. The other twelve do not.
Why it is kept
- To record every receipt and every payment, on the day.
- To show the cash in hand and at bank at any moment.
- To be the source of the postings to the ledger.
- To control cash, by making the book balance agree with the money in the box.
- To analyse expenditure by crop and by enterprise.
- To provide the receipts and payments figures the final accounts start from.
Which cashbook a farm keeps
A simple cashbook has one amount column each side. It suits a farm with no bank account, which is now rare.
A two-column cashbook has cash and bank columns each side. This is the normal farm cashbook and the specimen below is one.
A three-column cashbook adds a discount column. Farms rarely need it; discount is not a common feature of farm trade.
A petty cashbook on the imprest system is kept where the proprietor gives the overseer a float for small payments.
The specimen
Shivneri Farm, Baramati. Cashbook for November 2026.
| Date | Receipts | L.F. | Cash Rs. | Bank Rs. | Date | Payments | L.F. | Cash Rs. | Bank Rs. |
|---|---|---|---|---|---|---|---|---|---|
| 01-11 | To Balance b/d | 8,400 | 62,300 | 04-11 | By Fertiliser | 0 | 11,200 | ||
| 06-11 | To Sale of cane, field 2 | 0 | 1,84,000 | 07-11 | By Wages, week to 07-11 | 9,650 | 0 | ||
| 09-11 | To Cash from bank | 25,000 | 0 | 09-11 | By Bank, contra | 0 | 25,000 | ||
| 13-11 | To Sale of milk | 14,700 | 0 | 13-11 | By Tractor service | 1,850 | 0 | ||
| 18-11 | To Sale of cotton, first picking | 0 | 96,400 | 14-11 | By Wages, week to 14-11 | 10,020 | 0 | ||
| 24-11 | To Crop loan received | 0 | 1,50,000 | 21-11 | By Wages, week to 21-11 | 9,340 | 0 | ||
| 27-11 | To Sale of milk | 15,300 | 0 | 22-11 | By Pesticide | 0 | 4,800 | ||
| 26-11 | By Electricity, pump | 0 | 7,600 | ||||||
| 28-11 | By Wages, week to 28-11 | 8,900 | 0 | ||||||
| 30-11 | By Balance c/d | 23,640 | 4,44,100 | ||||||
| Total | 63,400 | 4,92,700 | Total | 63,400 | 4,92,700 |
01-12: To Balance b/d, cash Rs. 23,640, bank Rs. 4,44,100.
The features to point out in an answer
1. The two sides must agree. They do above, at Rs. 63,400 and Rs. 4,92,700.
2. The contra entry. Rs. 25,000 drawn from the bank on 9 November appears on the receipts side in the cash column and on the payments side in the bank column. It is one transaction, entered twice, and it is not income or expenditure. It is marked with a C in the ledger folio column and is not posted to the ledger at all.
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