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Types of Cash Book, Simple cash book, Double column cash book, Three column cash book, Exercise
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Elements of Book Keeping &
Accountancy
Cash Book
Prepared by Asif Yusuf bhai shaikhE-mail:[email protected]
Guide: Mr.Joseph JosephE-mail: [email protected]
Cash book is a type of subsidary book in which cash transactions are recorded.
Cash receipts and payments are recorded in it and at the end of the given period, we can also know the cash balance from the cash book.
Introduction
(1). Simple Cash Book
(2). Two columnar Cash Book
(3). Three Columnar Cash Book
Types of cash book
Transactions involving cash are only recorded in it.
As the format of this book is like an A/c, it is divided into two parts like an A/c.
The lefthand side is known as debit or receipt side and the righthand side is known as credit or payment side.
1. Simple Cash Book
Dr Cr
Date Receipts RN
LF Amt Date Payments V
NLF Amt
Format
This book is of three types :
(1). Cash and Discount columnar cash book In this book one column is added as
compared to simple cash book. This column is for 'Cash discount'. Trade Discount is not recorded in this
book or any cash book.
2. Two Columnar Cash Book
Dr Cr
Date Receipts RN
LF
Discountallow Amt Date Payments V
NLF
Discountreceive Amt
Format
In this book one column of bank is added for banking transactions.
Bank A/c is treated as a Personal A/c.
2. Cash and Bank Columnar Book
Dr CrDate Receipts R
NLF
BankAmt
Cash Amt Date Payments V
NLF
BankAmt
Cash Amt
Format
In this book two columns of Bank and Discount are inserted.
When payment is made by cheque discount may be received and when the amount is received by cheque discount may be allowed.
To record such discount and banking transactions this type of cash book is prepared.
3. Bank and Discount Columnar Book
Dr Cr
Date Receipts RN
LF
Discountallow
BankAmt Date Payments V
NLF
Discountreceive
CashAmt
Format
In this type of cash book three columns of amount are kept on both the sides.
Presently, this type of cash book is more useful because Discount, Bank, and Cash transactions are recorded simultaneously in it.
3. Three Columnar Cash Book
Dr Cr
Date Receipts RN
LF
Discountallowed
CashAmt
BankAmt Date Payments V
NLF
Discountreceived
Cash Amt
BankAmt
Format
Example of Three column cash book.
May 2010 1. Opening Cash balance:Rs 5000
Opening bank Overdraft:Rs 3000
3. Cash Purchase:Rs 1000
Cash Sales:Rs 2500 5. Ashish brought in cash Rs 8000, as more
funds were required in the business.
Transactions
7. Rs 4000 deposited in bank. 9. Goods of Rs 5000 purchased @ 10% cash
discount. Half the amount is immediately paid by cheque and the remaining by cash.
11. Salary Rs 600, brokerage Rs 100 and wages Rs 50 paid by cash.
14. Cash of Rs 1,000 received as commission. 18. Goods of Rs 1,000 sold to Dhaval. He sent
cheque of necessary amount after deducting 10% cash discount, which is deposited in bank.
21. Rs 1000 withdrawn from bank for payment of shop rent & Rs 2000 for school fees of daughter.
23. Shop rent & school fees of daughter paid. 25. Mayank issued a cheque of Rs 3000
towards payment of an old debt, which we deposited in bank.
28. cheque issued by mayank is dishonoured. 30. After keeping cash on hand Rs 2000,
remaining amount is deposited in bank.
Date Receipts RN
LF
Dis.allo
CashAmt
BankAmt Date Payments V
NLF
Disrec
CashAmt
BankAmt
May2010 To,
May2010 By,
1. Balance b/f 5000 1. Balance b/f 3000
3. Sales A/c 2500 3. Purchases A/c 1000
5. Capital A/c 8000 7. Bank A/c C 4000
7. Cash A/c C 4000 9. Purchases A/c 500 2250 2250
14. Commission A/c 1000 11. Salary A/c 600
18. Sales A/c 600 5400 11. Brokerage A/c 100
21. Bank A/c C 3000 11. Wages A/c 50
21. Cash A/c C 3000
Three columnar cash book
25. Mayank A/c 3000 23. Drawings A/c 2000
31. Cash A/c 6500 23. Shop rent A/c 1000
28. Mayank A/c 3000
31. Bank A/c C 6500
31. Balance C/f 2000 7650
Total 600 19500 18900 500 19500 18900
June
1. Balance b/f 2000 7650
Thank you
Mohammed Asif Class:11FD (Hameediyah) English Hr. Sec.School Ahmedabad 1
