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9.2 Double Entry Book Keeping—ISC XI
• Cash Book. Cash Book records cash transactions. Even banking transactions can be recorded in the
Cash Book.
When a Cash Book is maintained, there is no need to open a separate Cash Account in the Ledger as the
purpose of Cash Account is served by Cash Book. Thus, the Cash Book plays a dual role as a Journal as well
as a Ledger.
• Kinds of Cash Book. There are different kinds of Cash Book, such as:
(i) Simple or Single Column Cash Book—For recording cash transactions only.
(ii) Triple-column Cash Book—In this type of Cash Book, which in addition to Cash Column, has columns
for discount and bank on each side. Cash transactions are recorded in the Cash Column and bank
transactions are recorded in Bank Column.
If a firm maintains Triple-column Cash Book, there is no need to open Cash and Bank Accounts in the Ledger.
• Contra Entries: Contra entries mean entries that are made on both sides of the book.
Dr. FORMAT OF CASH BOOK SHOWING POSSIBLE ENTRIES IN Dr. (RECEIPTS) AND Cr. (PAYMENTS) SIDE Cr.
Particulars Discount Cash Bank Particulars Discount Cash Bank
Allowed Received
To Balance b/d By Balance b/d*
To Sales A/c By Cash A/c (C)
To Cash A/c (C) By Wages A/c
To Cheques in Hand A/c By Freight A/c
To Bank A/c (C) By Purchases A/c
To Deepak (Debtor) By Commission A/c
To Alok (Debtor) (Cheque By Salary A/c
Received but not By Rent A/c
Deposited on Same Day) By Advance to Staff A/c
To Cash A/c (Chequed from By Advance for
Alok Deposited) Purchases A/c
To Loan A/c By Advance for
To Capital A/c Purchase of
To Investments A/c (Sale) Fixed Assets A/c
To Rent Received A/c By Office Exp. A/c
To Bad Debts Recovered By Bank A/c
A/c (Cheque from Alok)
To Furniture A/c (Sale) By Electricity Exp. A/c
To Scrap Sale A/c By Telephone Exp. A/c
To Interest Received A/c By Prepaid Exp. A/c
To Arun (Cheque By Bank A/c (C)
Issued Dishonoured) By Drawings A/c
To Balance c/d ** By Chander (Creditors)
By Loan A/c
(Repayment)
By Investments A/c
By Stationery A/c
By Petty Cash A/c
By Interest A/c (Paid)
By Furniture A/c
By Subhash (Cheque
Deposited
Dishonoured)
By Balance c/d
To Balance b/d By Balance b/d
* Overdraft Opening Balance
** Overdraft Closing Balance