Cash Book

• Cash book is a book of original entry 

• Cash book is a ledger and journal 

• Cash book is a Real Account

• Cash book records Cash receipts on the debit side and payment on the Credit side 

• The opening entry in the cash book appear in the debit side 

• Credit balance in cash Book means overdraft 

• A transaction recorded in the both sides of the cash book is a contra entry

• A cash book both a journal and ledger

• Credit transactions are not recorded in the cash book 

• Cash book in a non trading concern is receipt and payment account

    Types of Cash book

       1. Single column cash book

       2. Double column cash book

       3. Three column cash book

       4. Petty cash book 

1. Single column cash book 

          

Single column cash book record all                  cash transactions 

It records all cash receipts and cash payments 

Single column cash book contains only one amount column in the debit and credit side of the cash book 

Left hand side of the cash book is receipt and right side of the cash book is payment 

2 . Double column cash book 

In double column cash book there are two column on debit and credit side , one is used to record cash transactions and second is used to record bank transactions

Double column cash book known as Two column cash book

Double column cash book records cash and bank transactions

When a cheque received and not deposited in the same day the amount of the cheque is entered in the cash column

When a cheque is received and deposited to the bank on the same day the amount of the cheque is entered in the bank column on the debit side 

3. Three column cash book 

In three column cash book there are three column in debit and credit side one is used to record cash transactions and second is used to record bank transactions and three is used to record discount 

4. Petty cash book

Petty cash book is a journal

The first column in the petty cash book is receipt column 

Petty cash book records all petty expenses

The balance of petty cash book is a asset

The amount given to the petty cashier in advance means Imprest Money 

Petty cash book is usually kept under imprest system