One column is for the transactions related to the cash, and the other column is for the transactions related to the business’s bank account. So, under the double-column cash book, the business also records cash transactions and transactions through the bank. But on the other hand, the transactions on credit are not recorded while preparing the double column cash–book. A double column cash book is similar to a single column cash book, but it has two columns instead of one. This type of cash book is used by businesses who want to track each individual transaction in more detail.

Double Column Cash Book- Cash Book with Bank Column:

Any mismatch can lead to the cheque being dishonoured, making it essential to be consistent when signing cheques. Cheques are legally recognised as valid payment instruments under the Negotiable Instruments Act. They remain valid for up to three months from the issue date, after which they become stale.

Format of a Single-Column Cash Book

It facilitates tracing back a transaction by checking the cash book on the date of the transaction. The closing balance of the cash book will always be debit, that is a positive balance. Cash is a part of the current asset, and thus its closing balance will always be debit.

Cash Book Format

The right hand, payments side (credit) would be identical in structure and format. At the end of the accounting period, the difference between the debit and credit sides is computed. Generally, invoice online or on the go businesses show a debit cash balance, indicating cash inflows are higher than cash outflows. Maintaining detailed records of your firm’s cash transactions in a cash book is extremely vital.

Alternatively, visit your nearest branch and apply in person. Simply navigate to the “Cheque Book Request” section online or ask for assistance at the branch. Cheque books are readily available to account holders, whether you have a savings or current account. They provide a convenient way to make payments without depending on digital methods, making them particularly useful when online transfers are unavailable. The cheque payee is the person or entity named on the cheque entitled to receive the payment. The payee can be an individual, a business, or an organisation.

• So, transactions like cheque payments and bank transfers are recorded in a two-column cash book.
• The first three columns are the same as the single column cashbook and show the date, transaction description (Desc.), and ledger folio reference (LF).
• Cash books have two sides (left-hand side and right-hand side) where all receipts in cash are recorded on the left side, and all payments in cash are recorded on the right side.
• As a result, a separate book is required for recording cash transactions.
• This columns records details of discounts allowed on the cash receipts side of the cashbook and discounts received on the cash payments side of the cashbook.

It helps the drawer and the bank monitor cheque transactions and ensures proper documentation in case of any disputes. This receipt is called a debit voucher because it supports the entries on the debit side of the cash book. If the debit column is larger than the credit column, the difference represents cash at bank. If, on the other hand, the credit column exceeds the debit column, the difference represents “overdrawn balance”. If the cheque is not deposited into a bank account on the same date, it is treated as cash and, therefore, the amount will appear in cash column. You may remember that cash and discounts are closely related.

It acts as a journal or book of prime entry because all cash transactions are recorded in it as and when they take place. At the end of fixed period, the petty cashier submits the details of petty expenses, and the chief cashier again advances a fixed amount for the next fixed period. If an entry is made on the debit side and the same entry is recorded on the credit side of the cash book, it is called a contra entry. Bank charges are recorded on the credit side of the cash book in the bank column. This is because cash at bank decreases as a result of such charges.

The first three columns in the diagram are the date, transaction description (Desc.), and ledger folio reference (LF). The single column referred to in the name of this cash ledger book is the monetary amount of the cash receipt (Cash) highlighted in gray. Consequently, this cash book has given rise to the concept of contra entries, commonly denoted as ‘C’ in the cash book. Contra entries are made when transactions occur between a cash and a bank account, for instance, cash withdrawn from a bank account for business investment. When the ledger clerk receives the cash book, they complete the double-entry process by posting the transactions to other ledger accounts involved in the cash book.