Question

can any one explain easy way of understanding double column cash book???

Answer 1

Double column cash book has 2 money columns on both debit and credit sides-one to record cash transactions and one to record bank transactions.In other words, we can say that if we add a bank column to both sides of a single column cash book, It would be become double column cash book. The cash column is used to record all cash transactions and works as a cash a/c whereas bank column is used to record all receipts and payments made by checks and works as a bank a/c. Both the columns are totaled and balanced like a traditional T-a/c at the end of an appropriate period which is usually one month.

since a double column cash book provides cash as well as bank balance at the end of a period.