TYPES OF TYPES OF CASH BOOKCASH BOOK

INTRODUCTIONINTRODUCTION

A large business enterprise has a number of business transactions. And all the transactions which deals with money or moneys worth are recorded first into a journal ( book of original entry ). In order to make the clerical work more easier a sub-division of Journals are made. Sub-division of journal into various books for recording the transaction of similar nature are called as subsidiary books.

The cash book is the most important subsidiary book of any business concern. It records the daily transactions relating to receipts and payment of cash. A cash book has two sides, a receipt side or debit side and a payment side or credit side.

TYPES OF CASH BOOK

A cash book is further divided into different types. They are as follows:

Single column cash book or simple cash book

Double column cash book or cash book with cash and bank column

Cash book with cash and discount column

Cash book with bank and discount column

Petty cash book

SINGLE COLUMN CASH BOOK It contains only one column for amount on each side.

Cash receipts are entered on the debit side and all cash payments are recorded on the credit side.FORMATE :

DateReceipts Payments

Particulars R.N L.F Amt ParticularsDate V.N L.F Amt

DOUBLE COLUMN CASH BOOK OR CASH BOOK WITH CASH AND BANK COLUMN

This cash book have two columns of amount on each side.

All payments into the bank are recorded in the bank column on the debit side and all payments through or withdrawal from the bank are recorded in the bank column on the credit side.FORMATE

Date

Receipts PaymentsParticulars R.N L.F Bank ParticularsDate V.N L.F Cash BankCash

CASH BOOK WITH CASH AND DISCOUNT COLUMNo Transactions are entered in this book as it is recorded in the single column

cash book.o If discount is allowed o receipt of cash or cheque, it is entered in the

discount column on the debit side. On making payment to credit in cash or cheque any discount allowed by him is entered on the credit side.FORMATE :

Date

Receipts PaymentsParticulars L.F Cash ParticularsDate L.F Discount CashDiscount

CASH BOOK WITH BANK AND DISCOUNT COLUMN

This book record all receipts and payments made through bank.

All receipts are shown in the Bank Column on the debit side and all payments are shown in the Bank Column on the credit side.

FORMATE :

Date

Receipts PaymentsParticulars L.F Bank ParticularsDate L.F Discount BankDiscount

PETTY CASH BOOK

Small or petty payments of business are not entered in the main cash book.

The petty cash book have a receipt and a payment side. But there may be a number of columns for payment on the credit side (analytical columns), besides the first total amount column.FORMATE

AmtReceived

Date RemarkParticularsVoucherNo

PostageTelegrams CarriagePrinting

StationaryMiscellaneous

Rs

TotalPayments

Rs Rs Rs Rs RsPs Ps Ps Ps Ps Ps

CONCLUSION

Accounting is the art and science of recording, classifying,

summarizing, interpreting and communicating the business

transactions. In order to make the process of accounting we use cash

book. It simplifies the process of recording and thereby saves labor

and time.

It also helps to prevents errors and frauds and helps to record more

details of the transaction. It also helps in the readily availability of

informatics

BIBLIOGRAPHY

o Dr. Nair Chandrasekharan K.G, Dr. Jayan & Dr. Jacob Thomas, Systematic Approach To Fundamentals Of Accounting, Chand Books, Thiruvananthapuram.

o Jain S.P & K.L Narang, Business Accounting, Kalyani Publishers, New Delhi

o www.w3school.com/accountimg_cashbooks.html

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