Two Column Cash Book/Double Column Cash Book:
Learning Objectives:
-
Define and explain a two/double column cash
book.
-
Prepare a two column cash book.
-
What is the difference between a single column
cash book and a double column cash book?
Definition and Explanation:
A double column cash book or two
column cash book is one which consists of two separate columns on the
debit side as well as credit side for recording cash and discount. In many
concerns it is customary for the trader to allow or to receive small
allowance off or against the dues. These allowances are made for prompt
settlement of accounts. In certain business almost all receipts or payments
are accompanied by such discounts and in order to avoid unnecessary postings
separate columns in the cash book are introduced to record the discounts
received or allowed. These discount columns are memorandum columns only.
They do not form the discount account. The discount column on the debit side
of the cash book will record discounts allowed and that on the credit side
discounts received.
Posting:
The cash columns will be posted in the same
way as single column cash book. But as regards discount column, each item of
discount allowed (Dr. side of the cash book) will be posted to the credit of
the respective personal accounts. Similarly each item of discount received
will be posted to the debit of the respective personal account. Total of the
discount column on the debit side of the cash book will be posted to the
debit side of the discount account in the ledger and the total of discount
column on the credit side of the cash book on the credit side of the
discount account. The discount columns are not balanced like cash column of
the tow column cash book.
Format of the Double Column Cash Book:
Debit Side
Credit Side
|
Date |
Particulars |
V.N. |
L.F. |
Discount |
Cash |
Date |
Particulars |
V.N. |
L.F. |
Discount |
Cash |
| |
|
|
|
|
|
|
|
|
|
|
|
Example of Two Column Cash Book:
From the following transactions write up a two
column cash book and post into ledger:
|
1991 |
|
|
Jan. 1 |
Cash in
hand $2,000 |
|
" 7 |
Received
from Riaz & Co. $200; discount allowed $10 |
|
" 12 |
Cash sales
$1,000 |
|
" 15 |
Paid
Zahoor Sons $500; discount received $15 |
|
" 20 |
Purchased
goods for cash $300 |
|
" 25 |
Received
from Salman $500; discount allowed $15 |
|
" 27 |
Paid
Hussan & Sons $300. |
|
" 28 |
Bought
furniture for cash $100 |
|
" 31 |
Paid rent
$100 |
Solution:
Cash Book
Debit Side
Credit Side
|
Date |
Particulars |
V.N. |
L.F. |
Discount |
Cash |
Date |
Particulars |
V.N. |
L.F. |
Discount |
Cash |
|
1991
Jan.1
" 7
" 12
" 25
1991
Feb1 |
To Balance b/d
To Riaz & Co.
To Sales a/c
To Salman
To Balance b/d |
|
|
10
15 |
2,000
200
1,000
500 |
1991
Jan.5
" 20
" 27
" 28
" 31 |
By Zahoor & Sons
By purchase a/c
By Hussan&Sons
By Furniture a/c
By Rent a/c
By Balance c/d
|
|
|
15 |
500
300
300
100
100
2,400 |
|
25 |
3,700 |
15 |
3,700 |
| |
2,400 |
|
|
Riaz & Co.
| |
|
|
1991
Jan. 7 |
By Cash
By Discount |
$
200
10 |
Sales Account
| |
|
|
1991
Jan. 12 |
By Cash |
$
1,000 |
Salman Account
|
|
|
|
1991
Jan. 25 |
By Cash
By Discount |
$
500
15 |
Babar Account
|
1991
Jan. 18 |
To Cash |
$
1,000 |
|
|
|
Zahoor Account
|
1991
Jan. 15 |
To Cash
Discount |
$
500
15 |
|
|
|
Purchases Account
|
1991
Jan. 20 |
To Cash |
$
300 |
|
|
|
Hussan & Sons
|
1991
Jan. 27 |
To Cash |
$
300 |
|
|
|
Furniture Account
|
1991
Jan. 28 |
To Cash |
$
100 |
|
|
|
Rent Account
|
1991
Jan. 31 |
To Cash |
$
100 |
|
|
|
Discount Account
|
1991
Jan. 31 |
To Sundries as per Cash book |
$
25 |
1991
Jan. 31 |
By Sundries as per cash book |
15
|
You may also be interested in other relevant articles:
-
Definition and Explanation of Cash Book
-
Single
Column Cash Book
-
Two Column
Cash Book/Double Column Cash Book
-
Three
Column Cash Book
-
Bank Reconciliation Statement
-
Petty Cash Book
-
Purchases
Day Book
-
Purchases Returns Book
-
Sales Day
Book
-
Sales
Returns Book
-
Bills
Receivable Book
-
Bills Payable
Book
-
Journal Proper
|
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