A double column cash book is a bookkeeping ledger used to record all cash transactions that occur in a business. It has two columns for each transaction, one for debit entries and one for credit entries, which allows for easy tracking of cash inflows and outflows. The first column is typically used to record all transactions related to cash, while the second column is used to record all transactions related to bank accounts.
Here is an example of a double column cash book:
| Date | Particulars | L.F. | Cash | Bank |
|---|---|---|---|---|
| 1/1 | Balance b/d | 5000 | 5000 | |
| 1/3 | Sales | 1001 | 2500 | |
| 1/5 | Rent paid | 1002 | 1200 | |
| 1/8 | Cash deposited | 3000 | ||
| 1/11 | Purchase | 1003 | 2000 | |
| 1/15 | Wages paid | 1004 | 1500 | |
| 1/18 | Bank charges | 50 | ||
| 1/22 | Cash withdrawn | 1000 | ||
| 1/25 | Interest received | 100 | ||
| 1/31 | Balance c/d | 8300 | 8050 |
In this example, the first row shows the opening balance for both cash and bank accounts. The "L.F." column is used to record the page number of the ledger where the transaction is recorded.
On January 3rd, a sale was made for 2,500 and recorded in the cash column. On January 5th, rent was paid for 1,200 and also recorded in the cash column. On January 8th, cash of 3,000 was deposited into the bank account and recorded in the bank column.
On January 11th, a purchase was made for 2,000 and recorded in the cash column. On January 15th, wages were paid for 1,500 and recorded in the cash column.
On January 18th, bank charges of 50 were recorded in the bank column. On January 22nd, cash of 1,000 was withdrawn from the cash account and recorded in the cash column.
On January 25th, interest of 100 was received in the bank account and recorded in the bank column. Finally, on January 31st, the closing balance for both cash and bank accounts was recorded.
This example demonstrates how a double column cash book can be used to record all cash and bank transactions and how it allows for easy tracking of cash inflows and outflows. By using this bookkeeping ledger, businesses can maintain accurate records of their financial transactions and ensure that their cash and bank balances are always up to date.
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