Cash Book | Types of Cash Book | Subsidiary Books

In Cashbook, we will record the all-cash transaction of the business. This book keeps the record of all cash payments and cash receipts. it is the book of original entries because first of all, we record the all-cash transaction in this book and then posted these transactions into the various ledger accounts.

1. Single Column:

This type of cash-book is very simple because it is similar to the cash account. it has only one column on both sides. The Debit side of the cash-book shows all receipts and the credit side shows all the payment made.

2. Double Column:

Double Column CashBook has a two account column on both sides of the cash book.  it is three Type shown as below:

1. Bank and Cash Column
2. Discount and Cash Column
3. Discount and Bank Column

It is an original entry book So we need to record full transaction but in the single column cash book, it is not possible to record properly of those cash transactions which are including discount account also. So we need a discount and cash column.

For example, Received cash from Pawan for Rs 9900/- and allow discount Rs 100/-.

The journal entry of this transaction will be

Cash A/c            Dr. 9,900

Discount A/c      Dr.   100

To Pawan a/c             10,000/-

It not possible to record full transactions because we did not have any column for recording the amount of discount. So We have to prepare the double column cash book.

We Explain it in Detail in Next to Next Article.

3. Triple Column

Every Businessman has a minimum of on current account in the bank. it is a very convenient way for him to get paid by cheque and make payments to others by cheque. So, he has to record these payments and receipts in the cashbook for this an additional column will require name bank column. So now total three-column will be required to record the proper payment and receipts in the cashbook these are shown below

1. Cash Column
2. Bank Column
3. Discount Column

4. Petty Cashbook: –

The head cashier pays some amount of cash to a petty cashier for petty expenses. The petty cashier prepares a statement of payments made for petty expenses in the fixed period of time for a head cashier is called a petty CashbBook.

Head Cashier may pay cash in the following methods :

1. When Needed
2. Fixed amount for a fixed period
3. Imprest account

The petty cashbook is of two types, which are shown below:

1. Simple Petty Cashbook:
2. Columnar Petty Cashbook

We Explain it in Detail in Article posted after the Triple column.

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