What is Cashbook?
In Cashbook, we will record the all-cash transaction of the business. This book keeps a 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 payments made.
2. Double Column:
Double Column CashBook has two account columns on both sides of the cash book. it is three Type shown as below:
- Bank and Cash Column
- Discount and Cash Column
- Discount and Bank Column
It is an original entry book So we need to record the full transaction but in the single column cash book, it is not possible to record properly 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 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/-
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.
3. Triple Column
Every Businessman has a minimum of one 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 a name bank column. So now a total three-column will be required to record the proper payment and receipts in the cashbook these are shown below
- Cash Column
- Bank Column
- Discount Column
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Chapter No. 8 – Cash Book – USHA Publication Class +1 – Solution
Question wise solution of the all Questions of Chapter No. 8 – Cash Book – USHA Publication Class +1 – Solutions are shown below: –