Explain the Different Types of Cash Book

There are three common versions of the cash book. 2 Two Column Cash Books.

Cash Book Definition Types Example Format

Creditor ledger Provides information about.

. The types of cash books are-Single column cash books. Read this article to learn about the following types of cash book and its preparation ie 1 Simple Cash Book 2 Two-Column Cash Book and 3 Three-Column Cash Book. A double column cash book records two types of transactions under two separate columns.

Now Golden Rules pertaining to two accounts would apply in such a case. All the payment made to creditors expenses incurred in cash and all other payments done appear on the credit side of cash book and the Auditor is required to vouch cash payments because chances of cash misappropriation are very high. The Cash Book is both a journal and a ledger.

It contains a debit side and a credit side. He brought a cheque from his chequebook to the HDFC bank branch where he has an account. Cash Book contains cash transactions passing into and out of business.

It contains three columns. Nominal Account of Wages and Real Account of Cash. A double column cash book consists of cash and bank column.

Some organizations also maintain a petty cash book which records the petty or small cash expenses of the firm. The columns of the purchase returns book match the purchases book namely. This book records all kinds of cash receipts on the debit side and all types of cash payments on the credit side.

The left side is called the Debit side and the right side is called the Credit Side. Single Column Cash Book. It is further subdivided into three different categories.

Under the double-entry system there are mainly 7 different types of journal in accounting. Debtor ledger Provides information about the credit sales related to customers. A single column cash book to record only cash transactions.

Format of Cash Book. Karan paid wages worth Rs 100000 in cash. The purchases returns book also referred to as Bought Returns Book or Returns Outwards Book records the details of the goods returned by the business to the suppliers.

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. Thus paying wages worth Rs 100000 in cash means wages are an expense to the business. Its similar to a single column cash book except it has two amount columns on both the debit and credit card.

Single column double column and triple column. Following points need to be considered for different types of cash payment. Cash book only cash related receipts and payments are recorded.

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 single-column cash book shows only receipts and payments of cash. This cash book will only record cash transactions.

But where cash receipts journal and cash payments journal are maintained cash book is not needed. Finance A cheque is an official instrument or a document that orders a bank to pay a certain amount of money which is mentioned on the cheque to the payee whose name is also mentioned on the cheque from the bank account of the payer. Single Column Cash Book.

Triple column cash book. The general cash book is subdivided into the single column double column and treble column cash book. For example - Ram has a savings account in HDFC bank.

There are two sides to the cash book. 2 types of Cash Book are 1 general cash book and 2 petty cash book. So this transaction involves two accounts.

All Cash receipts are recorded on the debit side and all the cash payments are recorded on the credit side of the cash book. A single column or simple cash book is that type of cash book which is used to note down only. A single column cash book is like a ledger account.

Usually the firms use triple column cash book. This is the simplest form of Cash Book and is used in businesses where payments are made and received mostly in cash and where usually no cash discount is received or given. This is also known as a Single Column Cash Book.

General ledger All business financial transactions. Here instead of one column we have an additional column for discounts. TYPES OF CHEQUES-1 Bearer Cheque Bearer cheques are the cheques which withdrawn to the cheques owner.

A doubletwo column cash book to record cash as well as bank transactions. Here we detail about the seven types of subsidiary books ie i Purchases Book ii Sales Book iii Purchases Return Book iv Sales Return Book v Bills Receivable Book vi Bills Payable Book and vii Journal Proper. Transactions are primarily recorded in the journal and thereafter posted to the ledger.

One for discount second for cash and the third for the bank. The entry and posting of cash transactions are made by hand. While the triple column cash book consists of cash bank and discount column.

A petty cash book to record small day to day. Double Column Cash Book. 3 Three Column Cash Books.

These are given below. A single column cash book consists of only cash column. Double column cash books.

A triplethree column cash book to record cash bank and purchase discount and sales discount. And Cash is paid towards such an expense. Purchase Book or Purchase Journal.

So along with the cash. These types of cheques normally used for a cash transaction. Kinds of Cash Book 1 Simple Cash Books.

There are 3 types of cash books that are maintained by an organization. 8 Different Types of Cheques Used in Organizations and Banking February 18 2019 By Hitesh Bhasin Tagged With. Different Types of Subsidiary Books in Accounting.

Cash Book Definition Types Example Format

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