Page 172 - Office Practice and Accounting -9

Double Column Cash Book

Dr (With discount and cash column) Cr
Date Particulars LF Dis. Cash Date Particulars LF Dis. Cash
Bai.1 To Bal b/d 14,000 Bai.10 By Rent A/c 3,000
Bai.2 To Sales A/c 15,000 Bai.20 By Mr. A. A/c 100 1,900
Bai.5 To Commission 500 Bai.25 By Salary 1,500
Bai.28 To Mr. B. 10 990 Bai.30 By Balance c/d 24,090
10 30,490 100 30,490
Jes.-1 To Bal. b/d 24,090

iii. Cash book with bank and discount column (Bank Book)
Especially in big firms transactions are not done in cash. All receipts are deposited
into bank and all payments are made through cheques. In such case, it is convenient
to the business firms to prepare the double column cash book with bank and discount
column instead of cash book. All direct deposits and cheques received debited
and all direct payments and payments through cheques credited to this book. It is
assumed that all transactions in business are done from bank so only bank column
is required to record the transactions. So it is also called bank book instead of cash
book. Similarly, discounts allowed are debited and discounts received are credited
to discount column. The specimen of Cash Book with Bank and Discount Column is
presented below:

Dr (With discount and cash column) Cr
Date Particulars LF Dis. Bank Date Particulars LF Dis. Bank

14. Prepare double column cash book with discount and bank column for
the month of Paush from the following transactions:
Paush 1 : Balance at bank Rs. 6,000
Paush 5 : Goods of Rs. 4,000 purchased from Ram
Paush 7 : Furniture of Rs. 9,000 sold to Hari
Paush 10 : Rent Rs. 3,000 paid through cheque
Paush 15 : Cash Rs. 19,000 deposited
Paush 19 : A cheque of 5,000 received from Dinesh

Paush 22 : A cheque of Rs. 3,900 issued to Ram in full settlement
Paush 25 : Hari paid Rs. 8,600 through cheque in full settlement

168 Office Practice and Accounting 9