Ndouble column cash book meaning

We are taking the same example as the single column to understand easily. A triplethree column cash book to record cash, bank and purchase discount and sales discount. This video will help you to solve your problems of cash. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.

Cash book is of four types out of them one is a cash book with bank column. Advantages of double column or two column cash book. These two amount columns on debit side and credit side will serve as bank ac and so it will not be necessary to open a bank ac in the ledger. In many concerns it is customary for the trader to allow or to receive small allowance off or against the dues. In other words, we can say that if we add a bank column to both sides of a single column cash book, it would become a double column cash book. Note that the discount columns in the cash book act as a memoranda, meaning that it is not part of the double entry system. It is the custom of the business houses that discount is allowed and received for early payments of dues. This video will help you to solve your problems of cash book which are having bank and cash. The entries in cash book are regarded as one aspect of the double entry system the other aspect is posted to the ledger in the concerned account. The date of transaction is written in this column in two linesin the first line, the year and in the second line, the name of.

The cash column is used to record all cash transactions and works as a cash account whereas bank column is used to record all receipts and payments made by checks. Double column cash book explanation, format, example. Double column cash book columns have the following advantages in addition to those. All entries made in bank column of double column cash book form a part of double entry system and hence a separate bank ac need not be opened in ledger. If a business keeps a bank account and receipts and payments are frequently made through bank account than it is useful to maintain a three column cash book rather than a single column cash book or a double column cash book. Double column cash book or two column cash book consistsof two columns of amount on each side to record cash and bank transactions. Definition and explanation of cash book with examples. Rather than keeping cash acoount and bank account apart from each other, double column cash book enables us to keep these two accounts side by side. A petty cash book to record small day to day cash expenditures. Double column cash book explained with example tutorstips. A double column cash book or two column cash book is one which consists of two separate columns on the debit side as well as credit side for recording cash and discount.

The double column cash book also known as two column cash book has two money columns on both debit and credit sides one to record cash transactions and one to record bank transactions. Both cash transactions and bank transactions are recorded in the same book. The cash book is recorded in chronological order, and the balance is updated and verified on a continuous basis. Cash book explanations show your love for us by sharing our contents. A cash book is a subsidiary to the general ledger in which all cash transactions during a period are recorded. The above format of double column cash book has six columns on both debit and credit sides. What is a cash book definition, explanation and types. They are merely used as convenient means of accumulating the discounts before the totals are posted to the discount accounts in the general ledger. Here is the video about double column cash book with solution. The purpose of cash and bank columns has been explained at the. In the case of double column cash book, cash column records all the transactions relating to cash so, it works as the cash accounts and the bank column records all the transactions relating to bank such as checks received, checks issued, etc so, it works as the bank accounts. In contra entries both the debit and credit aspects of a transaction are recorded in the cash book itself. In fact, no separate cash account is opened in the ledger, cash book serves the purpose of the cash account. Double column cash book explanation, format and examples.