Class 11 Entrepreneurship Notes · CBSE
Cash Register
Cash Register — learn how a cash book records daily receipts and payments, how the running balance is updated, and how contra entries move money between cash and bank. CBSE Class 11 Entrepreneurship notes with the Ratan Singh and Laxmi Stationary Store exercises.
Last updated: 10 Sep 2026
Notes
Cash-Only Cash Book (6 Columns)
A cash register (cash book) records every rupee that moves in and out of the business, day by day. The simplest version tracks cash alone — six columns, with the balance updated after every row.
| Date | Description | Ref No. (Voucher/Bill) | Cash Received (₹) | Cash Paid (₹) | Cash Balance (₹) |
|---|---|---|---|---|---|
| Apr 1 | Opening Balance | — | — | — | 40,000 |
Solved Example
Problem
Opening balance ₹ 40,000. Spent ₹ 10,000 for purchasing furniture. Next day sold products for ₹ 5,000.
Solution
Final cash balance: ₹ 35,000
| Date | Description | Ref No. | Cash Received (₹) | Cash Paid (₹) | Cash Balance (₹) |
|---|---|---|---|---|---|
| Jul 1 | Opening Balance | — | 30,000 | ||
| Jul 1 | Purchase of Furniture | 3675 | 15,000 | 15,000 | |
| Jul 2 | Purchase 3 Dozen T-shirts | 863 | 3,600 | 11,400 | |
| Jul 6 | Rent, Banner and Handbill | 5640 | 350 | 11,050 | |
| Jul 7 | Sale of 3 Dozen T-shirts | 6012 | 7,200 | 18,250 | |
| Jul 10 | Purchase 5 Dozen T-shirts | 887 | 6,000 | 12,250 | |
| Jul 14 | Sale of 5 Dozen T-shirts | 6087 | 11,880 | 24,130 | |
| Jul 16 | Purchase 5 Dozen T-shirts | 906 | 6,000 | 18,130 | |
| Jul 16 | Commission Paid | 1294 | 500 | 17,630 | |
| Jul 16 | Banner and pamphlets | 765 | 400 | 17,230 | |
| Jul 21 | Sale of 3 Dozen T-shirts | 6127 | 7,200 | 24,430 | |
| Jul 25 | Purchase 3 Dozen T-shirts | 918 | 3,600 | 20,830 | |
| Jul 25 | Sale of 5 Dozen T-shirts | 6159 | 12,000 | 32,830 | |
| Jul 31 | Monthly Tea Expenses | 189 | 300 | 32,530 | |
| TOTAL | 38,280 | 35,750 |
Cash balance is not profit
A healthy cash balance only means money is on hand — it does not mean the business earned a profit. Ratan Singh closes July with ₹ 32,530 in the box, but that figure ignores unsold stock, dues and the cost of goods already paid for. Profit = revenue − expenses; cash = money in hand.So what? — Your own wallet works the same way: a full wallet after Diwali shopping does not mean you earned more this month.
Cash and Bank Cash Book (9 Columns)
Once a business opens a bank account, the cash book grows to nine columns — the same six for cash, plus Cheque Received, Cheque Issued and Bank Balance. Cash and bank are tracked side by side in one register.
| Date | Description | Ref | Cash Recd (₹) | Cash Paid (₹) | Cash Bal (₹) | Chq Recd (₹) | Chq Issued (₹) | Bank Bal (₹) |
|---|---|---|---|---|---|---|---|---|
| Apr 1 | Opening Balance | — | 1,00,000 |
Solved Example
Problem
Opening bank balance ₹ 1,00,000. Purchase raw material ₹ 5,000 by cheque. Next day sold product ₹ 20,000 by cheque.
Solution
Final bank balance: ₹ 1,15,000
| Date | Description | Ref | Cash Recd (₹) | Cash Paid (₹) | Cash Bal (₹) | Chq Recd (₹) | Chq Issued (₹) | Bank Bal (₹) |
|---|---|---|---|---|---|---|---|---|
| Jan 1 | Opening Balance | — | 12,500 | 25,000 | ||||
| Jan 3 | Sale | 682 | 9,500 | 22,000 | 25,000 | |||
| Jan 4 | Paid by Excel | 1752 | 22,000 | 6,000 | 31,000 | |||
| Jan 6 | Filing Cabinet Purchase | 546 | 22,000 | 5,000 | 26,000 | |||
| Jan 6 | Purchase of Stationery | 3784 | 15,000 | 7,000 | 26,000 | |||
| Jan 7 | Cash Withdrawal | 1821 | 5,000 | 12,000 | 5,000 | 21,000 | ||
| Jan 8 | Salary Paid | 236 | 5,000 | 7,000 | 21,000 | |||
| Jan 9 | Rent Paid | 107 | 7,000 | 2,500 | 18,500 | |||
| Jan 10 | Deposit to Bank | 3481 | 5,000 | 2,000 | 5,000 | 23,500 | ||
| TOTAL | 14,500 | 25,000 | 11,000 | 12,500 |
Contra entries — one transaction, two columns
When money moves between the cash box and the bank, both sides of the register are touched:Jan 7 — cash withdrawal ₹ 5,000: bank side shows Cheque Issued 5,000, Bank Balance 26,000 − 5,000 = 21,000; cash side shows Cash Received 5,000, Cash Balance 7,000 + 5,000 = 12,000.Jan 10 — deposit to bank ₹ 5,000: bank side shows Cheque Received 5,000, Bank Balance 18,500 + 5,000 = 23,500; cash side shows Cash Paid 5,000, Cash Balance 7,000 − 5,000 = 2,000.An ATM withdrawal works exactly like a cheque issued: money leaves the bank and enters the cash box, so it is entered twice — outflow from bank, inflow to cash.
Key Takeaways
Key Takeaways
- The cash register records money in and money out, day by day — it tracks cash position, not profit.
- Cash-only format has 6 columns; adding a bank account makes it a 9-column cash-and-bank register.
- Balance = Opening + Received − Paid, updated after every row. Check the running balance line by line.
- A contra entry touches both cash and bank — a withdrawal is Cheque Issued (bank) + Cash Received (cash); a deposit is Cash Paid (cash) + Cheque Received (bank).
- Closing cash balance ≠ profit. Ratan Singh holds ₹ 32,530 in cash but that ignores stock, dues and costs already paid.
- So what? — Every UPI statement you have ever seen is a cash book: receipts in, payments out, balance updating after each line.