TWO OR DOUBLE COLUMN CASH BOOK:

A double column cash book is one which consists of two separate columns on the debit as well as on credit side for recording cash ahd discount. It is a common practice among the businessmen that they allow and receive discounts when they make or receive payments on purchases and sales of goods. These cash discounts are usually made for prompt settlements of accounts. The discount columns are not balanced like cash columns of the cash book because a businessmen is keen to know that how much cash discount he has availed or lost during a particular period.

Posting the double column cash book:

The following points should be kept in mind while posting the double column cash book:

I.         The entries of cash will be posted in the same way as the simple cash book.

  1. The items of discount appearing on the debit side will be posted on the credit of the respective account similarly each item of discount received will be posted to

the debit of the respective account.

  1. The total of discount column on the debit side of the cash book will be posted as

debit to the discount in the ledger.

  1. The total of the discount column on the credit side of the cash book will be

posted on the credit side of the discount account.

‘Illustration -21

Enter the following transactions in two column or double column cash book and post in the ledgers.

Cash in hand Rs. 5,000

Received cash from Karim and Co. Rs. 200 and allowed them discount

Rs. 20.

Cash sales Rs. 1,500.

Paid cash to Zahid Sons Rs. 500, Discount received from them Rs. 25.

Purchased goods for cash Rs. 800.

Received cash from Salman Rs. 800, Discount allowed to him Rs. 20.

Paid Hashim and Co. Rs. 300.

Paid Rent of the building Rs. 100 paid Zaheer and Co. Rs. 450, discount

received Rs. 25.

Two Column Cash Book

Date Particulars V.N L.F Dis

Cash

Date

2007

Particulars V.N L.F Dis

Cash

2007

Mar.1

To Bal. b/d

5,000

Mar.15

By Zahid & Co

25

500

.    7

To Karim Co.

20

200

” 20

By purchases

800

“   12

Saks A/c

1,500

” 28

By Hashim Co

300

” 25

To Salman

20

800

“     31

By Rent A/c

100

“     31

By Zahir & Co

25

450

“     31

By Balanced c/d

5,450

40

7,500

Total

50

7,500

Total

LEDGERS

Karim & Co.

       

By Cash A/c

200

       

By Discount

20

         

200

 

Sales Account

       

By Cash

1500

         

1,500

Zahid Sons

 

To Cash A/c

500

     
 

To Discount

25

     
   

525

     

 

Purchases Account

 

To Cash A/c

800

     
   

800

     

 

Salman

       

By Cash A/c

800

       

By Discount

20

         

820

 

Hashim & Co

 

To Cash A/c

300

     
   

300

     

 

Rent Account

 

To Cash A/c

100

     
   

100

     

 

Zaheer & Co.

 

To Cash A/c

950

     
 

To Discount

25

     
   

975

     

 

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