Explain double column cash book and its format

In double column cash books, there will be two cash columns on both the credit side and debit side. One column records the cash transactions and the other column records bank transactions.

Single column cash books will become double column cash books, if we add bank transaction column to single column cash book format.

Most of the organisations will prefer a double column cash book than single column cash book, because it has bank balances at the end each period. Ledgers for both cash transactions and bank transactions are maintained separately.

Format

The format of double column cash book is as follows −

For recording cash transactions

• All cash receipts are recorded in the debt side of the cash column (double column cash book).
• All cash payments are recorded in credit of the cash column (double column cash book).
• If the customer pays through the bank, then entry is made on the debit side of the bank column (double column cash book).

Recording bank transactions

• If the payment is received through a cheque and deposited in the same bank account on the same date, then the respective amount is recorded in the debit side of the bank column.
• If the payment is received through a cheque and deposited on some other date or not deposited on the same date, then the respective amount is recorded in the cash column.
• If the check is received on the subsequent date of its deposited receipt in the bank, then entry is recorded in the debit side of the bank column and credit side of the cash column. This type of entry is called “contra entry”.
• Amount of issued check is recorded in credit side of bank column

Nagasravan Tamma

Updated on: 09-Jul-2021

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