Double Column Cash Book | Explained with Example

In Cashbook, we will record the all-cash transaction of the business. This book keeps a record of all cash payments and cash receipts. In this article, we will discuss the Double Column Cash Book.

What is the Double Column Cash Book?

Double Column Cash Book has two account column on both sides of the cash book instead of the amount in the single column cash book. It has three types shown below:

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

Cash Book 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 those cash transactions properly which are including discount account also. So we need to prepare the double column cash book which consisting a discount and cash column.

For example, Received cash from Pawan for Rs 9900/- and allow a discount of 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/-

In the Single column cash book, it not possible to record the full transaction because we did not have any column for recording the amount of discount. So We have to prepare a double column cash book.

Format of Double Column Cash Book:-

There are three types of Double Column Cash Book which all are explained as under:

1. The format of the Discount and Cash Column is shown below:

2. The format of the Cash and Bank Column is shown below:

3. The format of the Bank and Discount Column is shown below:

The Columns of the Double Column Cash Book:

The Columns of the Double Column Cash Book are Explained Below:

1. Date:
2. Particulars:
3. Voucher Number (V. NO.):
4. L.F. (Ledger Folio):

All the Above column are the same as the single column cash book but instead of the amount column in the 1st type of double column cash book, Discount and Cash Column are maintained and in the 2nd type Cash and Bank column are maintained and in 3rd type bank and discount column are maintained a shown in above images.

Example of Discount and Cash Column:

We are taking the same example as the single column to understand easily. We have just made some of the changes to convert this example into the double column cash book with discount Column.  Changes are shown in bold font.

1. 01/04/17 Started a business with cash Rs 50,000/-
2. 04/04/17 Goods purchase worth Rs 10,000/- and payment made immediately get discount Rs 100/-
3. 07/04/17 Rent paid for the building Rs 1,000/-
4. 09/04/17 Wages paid for Rs 2,500/-
5. 11/04/17 Sold goods worth Rs 5,000/- and to receive payment immediately allow discount Rs 100/-
6. 12/04/17 Sold goods to Ram & sons Rs 4,000/-
7. 14/04/17 Commission paid to Rohan Rs 100/-
8. 15/04/17 Payment received from Ram & sons Rs 3,950 and Allowed them a discount of Rs 50/-
9. 16/04/17 Labour charges paid for Rs 250/-
10. 18/04/17 Furniture purchase for Rs 2,500/-
11. 21/04/17 Sold goods worth Rs 2,500/- to Ramesh.
12. 23/04/17 Payment made to Ramesh Rs 2,450 and received the discount of Rs. 50/-
13. 25/04/17 Freight paid to Rs 300/-.
14. 29/04/17 An owner withdraw cash from the business for personal use Rs1,000.

Solution: –

Note: –

Transaction Dated 12/04/17 & 21/04/17 not recorded in cash book because these are credit business transactions.

we do not need to balance the Discount column because they both are different account. On the debit side of the cash book, it is discount allowed and on the credit side, it is a discount received. So, just total these both columns.

Example of Bank and Cash Column:

We are taking the same example as the single column to understand easily. Now just made some of the changes to convert this example into the double column cash book with Bank Column. we have bold the changes. 

1. 01/04/17 Started a business with cash Rs 50,000/- and bank balance of Rs 2,00,000/-
2. 04/04/17 Goods purchase worth Rs 10,000/- and payment made immediately By cheque.
3. 07/04/17 Rent paid for the building Rs 1,000/-
4. 09/04/17 Wages paid for Rs 2,500/- by Cheque
5. 11/04/17 Sold goods worth Rs 5,000/- and receive payment immediately by cheque 
6. 12/04/17 Sold goods to Ram & sons Rs 4,000/-
7. 14/04/17 Commission paid to Rohan Rs 100/-
8. 15/04/17 Payment received from Ram & sons Rs 4,000/- By cheque.
9. 16/04/17 Labour charges paid for Rs 250/-
10. 18/04/17 Furniture purchase for Rs 2,500/-
11. 21/04/17 Sold goods worth Rs 2,500/- to Ramesh.
12. 23/04/17 Payment made to Ramesh Rs 2500 by Cheque
13. 25/04/17 Freight paid to Rs 300/-.
14. 29/04/17 An owner withdraw cash from the business for personal use Rs1,000.

Solution: –

Example of Discount and Bank Column:

We are taking the same example as the single column to understand easily. Now just made some of the changes to convert this example into the double column cash book with Bank & discount Column. Changes are shown in bold font. 

All the following transactions are made with the bank account instead of the Cash account.

1. 01/04/17 Started a business with cash Rs 50,000/-
2. 04/04/17 Goods purchase worth Rs 10,000/- and payment made immediately get discount Rs 100/-
3. 07/04/17 Rent paid for the building Rs 1,000/-
4. 09/04/17 Wages paid for Rs 2,500/-
5. 11/04/17 Sold goods worth Rs 5,000/- and to receive payment immediately allow discount Rs 100/-
6. 12/04/17 Purchase goods from Ram & sons Rs 4,000/-
7. 14/04/17 Commission paid to Rohan Rs 100/-
8. 15/04/17 Payment received from Ram & sons Rs 3,950 and Allowed her discount of Rs 50/-
9. 16/04/17 Labour charges paid for Rs 250/-
10. 18/04/17 Furniture purchase for Rs 2,500/-
11. 21/04/17 Sold goods worth Rs 2,500/- to Ramesh.
12. 23/04/17 Payment made to Ramesh Rs 2,450 and received the discount of Rs. 50/-
13. 25/04/17 Freight paid to Rs 300/-.
14. 29/04/17 An owner withdraw cash from the business for personal use Rs1,000.

Solution: –

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