Question

what is cash book? explain the different types of cash book. draw the format of different types of cash books with at least five items in each .​

Answer 1

Answer:

A book in which receipts and payments are recorded is known as a cash book.

Answer 2

Answer:

Cash book:-

a book in which receipts and payments of money are recorded.

There are four major types of cash book that companies usually maintain to account for their cash flows. These are given below:

A single column cash book to record only cash transactions.

A double/two column cash book to record cash as well as bank transactions.

A triple/three column cash book to record cash, bank and purchase discount and sales discount.

A petty cash book to record small day to day cash expenditures.

1. Single Column:

This type of cash book is very simple because it is similar to the cash account. it has only one column on both sides. Debit side of cash book shows the all receipt and credit side shows all the payment made.

2. Double Column:

Double Column Cashbook has a two account column on both sides of the cash book. it is three Type shown as below:

Discount and Cash Column

Bank and Cash Column

Discount and Bank Column

Cash Book is an original entry book So we need to record full transaction but in single column cash book, it is not possible to record properly of those cash transactions which are including discount account also. So we need discount and cash column cash book.

For example, Received cash from Pawan for Rs 9900/- and allow discount Rs 100/-.

The journal entry of this transaction will be

Cash A/c Dr. 9,900

Discount A/c Dr. 100

To Pawan a/c 10,000/-

In Single column cash book, it not possible to record full transaction because we did not have any column for recording the amount of discount. So We have to prepare double column cash book.

3. Triple Column

Every Businessman has a minimum of on current account in the bank. it is a very convenient way for him to get paid by cheque and make payment to others by cheque. So, he has to record these payments and receipts in the cash book for this an additional column will require name bank column. So now total three column will be required to record proper payment and receipts in the cash book these are shown below

Cash Column

Bank Column

Discount Column

Hope this helped you:-)