Bank Column Cash Book

Cash book with cash and bank columns have been explained in the earlier chapter. One column is for recording cash transactions and the other column is for recording bank transactions.

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The triple column cash bookalso referred to as three column cash book is the most exhaustive form of cash bookwhich has three money columns on both receipt Dr and payment Cr sides to record transactions involving cash bank and discounts.

. They are cash bank and discount. This column is added in the format because all payments made by cheque and the number of cheque is written in that column to keep the accounting record updated. If correct they should.

The format of bank book is same as that of cash book except the column of cheque no. Debit Cash in the general balance ledger for the total receipts and credit it for the total payments for the day. A firm normally keeps the bulk of its funds at a Bank.

Foot the Debit and Credit columns of the general balance ledger. The single column cash book also known as simple cash book is a cash book that is used to record only cash transactions of a business. Petty cash book Single column cash book.

And Payments side Cr. Some entries that are made only after receiving the information from the bank viz i. But discount received is recorded in credit and discount allowed is recorded in debit side.

Every time cash checks money orders or postal orders or anything else are deposited in the bank the cash book bank column is debited. Single Column Cash Book This is a book where there is only one column by name Cash. A three column cash book includes three amount columns on both sides ie cash bank and discount.

It is customary to put the word To before all entries on the debit side. The debit balance as per the cash book means the balance of deposits held at the bank. In other words the Two-column Or Double column cash book has.

Double Column Cash Book Cash and Bank A double-Column Cash book is a type of cash book which has two columns for the amount on both sides Receipts side Dr. Cash paid into bank and 3. This type of cash book is similar to the above cash book ie cash book with discount and cash columns but the only difference is that bank is there instead of cash.

Let us have a look at the types of cash books. On the debit side of the cash book the bank column represents. Maintaining a single column cash book amounts to eliminating recording the cash transactions in the journal and maintaining only the ledger account Cash ac with regard to cash transactions.

When petty cash is replenished Petty Cash is debited and Cash is credited. This is nothing but a book where Cash ac is maintained. For December 2016 all figures in Rupees.

A three column cash book or treble column cash book is one in which there are three columns on each side debit and credit side. If an amount is written in an incorrect column of a work sheet the error should be erased and the amount should be written in the correct column. Under triple column cash book three amount columns are prepared in one side.

The ruling for the cash book is given with the following illustration worked out. Debit side records receipt amount. Cash Book is of Four types out of them one is A CASH BOOK WITH BANK COLUMNThis video will help you to solve your problems of cash book which are having bank.

In the case of double column cash- book cash column records all the transactions relating to cash so it works as the cash accounts and the bank column records all the transactions pertaining to bank such as checks received checks issued etc. Do Practice Cash book MCQs for conceptual and theoretical understanding. The transactions which increase the cash and bank balance are recorded on the debit side of the cash and bank columns respectively.

There are four types of cash books used for accounting purposes. Thats to say an entry is made in the bank column on the debit side of the cash book. A double column cash book also known as a two column cash book consists of two columns on each side to record cash and bank transactions.

Post the general cash book to the general balance ledger. Similarly when a check is issued to a supplier an entry is made in the bank column on the credit side of the cash book. One is used to record cash transactions the second is used to record bank transactions and third is used to record discount received and paid.

All cash receipts are deposited with the bank and payments are made only through cheques. Cheques deposited into bank for collection. One on each side for recording discount cash and bank amounts.

This cash book is prepared in the same way as simple and double column cash books are prepared. A three column cash book also known as a triple column cash book contains three money columns on both the debit and credit sides. A three column cash Book is a cash book which contains bank column along with cash and discount columns.

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. In big firms transactions are not done in cash. Credit side records payment amount.

On the other hand the credit balance as per the cash book indicates bank overdraft. 1Single column cash book 2Double column cash book 3Triple column cash book 4. The other side of the three column cash ledger book would be headed Credit and show an identical format with the three columns representing the monetary amounts of the cash payment bank payment and discounts received.

Rather than separating cash and bank accounts a double column cash book enables accountants to maintain the two accounts side by side. If a business holds a bank account frequently makes receipts and payments through that bank account then it is useful to maintain a three column cash book. The three column cashbook is sometimes referred to as the triple cash book treble cash book or the 3 column cash book.

It indicates the favourable balance as per cash book or favourable balance as per the passbook. Enter the following transactions in the Cash Book with Cash Bank and Discount column for A R Khan and Co. Money can be deposited.

This allows for greater convenience when recording transactions. The cash book with columns for discount cash and bank is known as three column cash book. When cash is received the account Cash will be.

Post only the totals of the Collection and Exchange and Out-of-Town Banks columns. In the cash book bank charges are recorded on the.

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