This is a cash book that takes care of both cash and bank. It is called double column cash book because it has cash and book column on both debit and credit side.
The cash column is used for recording cash and cheque received while the credit side is used for recording all payments made by cheque and cash received and paid into the bank.
The debit side is for receipt of cash and cheque and credit side for payment.
Double / Two Column Cash Book
Date Particulars F Cash Bank Date Particulars F Cash Bank
Contra Entry: Is the recording of single entry in both debit and credit sides of the same cash book.
Example:
Mr. More Blessing started a business with #5000 cash and #7,000 bank on June 2014.
June 3 Purchase goods by cash 2,500
June 5 With draw cash from bank 1000
June 6 Cash sales 1800
June 10 Receive cash from Ngozi 1200
June 15 Cash sales 1000
June 20 Paid insurance by cash 500
June 25 Paid wages by cheque 1000
Dr Double Column Cash Book Cr
Date Particulars F Cash Bank Date Particulars F Cash Bank
Assignment
Enter the following transactions into the cash book of which Oluwaseyi Nig. Ltd as at 1st of May, 2014.
May 1 Cash in hand 7,000
Cash in Bank 10,000
May 4 Cash sales 2,000
May 6 Bought goods for sale 3,000
May 8 Received cheque from papa 1,500
May 12 Cash sales 2,000
May 15 Bought furniture by cheques 12,000
May 20 Paid rent by cheque 800
May 25 Paid wages by cash 700
May 27 Cash paid into bank 1000
See also