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CASH BOOK :-

Meaning of Cash Book- Another part of the accounting methodology is to maintain cash book which is used to record receipts and payments of liquid cash. It works as a book of original entry as well as a ledger account. The entries related to receipt and payment of cash are first recorded in the cash book and then posted to the relevant ledger accounts. Moreover, a cash book is a substitute for cash account in the ledger. So the cash book is called a journalised ledger.

Before some years cash book are generally maintained in paper book but now a days various accounting software has been developed which take less time as before. Normally there are three types of cash books are maintained as follows.

i) Single column cash book.

i) Single column cash book - The single column cash book also known as simple cash book, which is used to record only cash transactions of a business. It is very identical to a traditional cash account in which all cash receipts are recorded on left hand (debit) side and all cash payments are recorded on right hand (credit) side in a chronological order.

The specimen of a single column cash book is give below.

Receipts (Dr) Payments (Cr)
DATE PARTICULARS VOUCHER NO. L.F AMOUNT DATE PARTICULARS VOUCHER NO. L.F AMOUNT
XXX XXX XXX XXX XXX XXX XXX XXX XXX

ii) Double column cash book -

ii) Double column cash book - The double column cash book also known as two column cash book has two columns on both debit and credit sides one to record cash transactions and another record bank transactions. The cash column is used to record all cash receipt & payments transactions and bank column is used to record all receipts and payments made by cheques and works as a bank account. Both the columns are totalled and balanced like a traditional T-account at the end of an accounting period.

The specimen of a double column cash book is give below.

Receipts (Dr) Payments (Cr)
DATE PARTICULARS VOUCHER NO. L.F CASH BANK DATE PARTICULARS VOUCHER NO. L.F CASH BANK
XXX XXX XXX XXX XXX XXX XXX XXX XXX *** ***

iii) Triple column cash book

iii) Triple column cash book - The triple column cash book (also referred to as three column cash book) is the most exhaustive form of cash book which has three money columns on both receipt (Dr) and payment (Cr) sides to record transactions involving cash, bank and discounts. A triple column cash book is usually maintained by large firms which make and receive payments in cash as well as by bank and which frequently receive and allow cash discounts.

The specimen of a Triple column cash book is give below.

Receipts (Dr) Payments (Cr)
DATE PARTICULARS VOUCHER NO. L.F CASH BANK DISC DATE PARTICULARS VOUCHER NO. L.F CASH BANK DISC
XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX XXX

Also there are three type of cash book but normally single column cash books are maintained in the practical field of accounting which records cash receipts & cash payment. When cash receipt & payment are recorded in cash book, then concerned transaction will be posted in to ledger in each & individually.

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