Two Column Cash Book/Double Column Cash Book


Two Column Cash Book/Double Column Cash Book:

Learning Objectives:

  1. Define and explain a two/double column cash book.

  2. Prepare a two column cash book.

  3. What is the difference between a single column cash book and a double column cash book?

Definition and Explanation:

A double column cash book or two column cash book is one which consists of two separate columns on the debit side as well as credit side for recording cash and discount. In many concerns it is customary for the trader to allow or to receive small allowance off or against the dues. These allowances are made for prompt settlement of accounts. In certain business almost all receipts or payments are accompanied by such discounts and in order to avoid unnecessary postings separate columns in the cash book are introduced to record the discounts received or allowed. These discount columns are memorandum columns only. They do not form the discount account. The discount column on the debit side of the cash book will record discounts allowed and that on the credit side discounts received.

Posting:

The cash columns will be posted in the same way as single column cash book. But as regards discount column, each item of discount allowed (Dr. side of the cash book) will be posted to the credit of the respective personal accounts. Similarly each item of discount received will be posted to the debit of the respective personal account. Total of the discount column on the debit side of the cash book will be posted to the debit side of the discount account in the ledger and the total of discount column on the credit side of the cash book on the credit side of the discount account. The discount columns are not balanced like cash column of the tow column cash book.

Format of the Double Column Cash Book:

            Debit Side                                                     Credit Side

Date Particulars V.N. L.F. Discount Cash Date Particulars V.N. L.F. Discount Cash

Example of Two Column Cash Book:

From the following transactions write up a two column cash book and post into ledger:

1991
Jan. 1 Cash in hand $2,000
”  7 Received from Riaz & Co. $200; discount allowed $10
”  12 Cash sales $1,000
”  15 Paid Zahoor Sons $500; discount received $15
”  20 Purchased goods for cash $300
”  25 Received from Salman $500; discount allowed $15
”  27 Paid Hussan & Sons $300.
”  28 Bought furniture for cash $100
”  31 Paid rent $100

Solution:

Cash Book

            Debit Side                                                     Credit Side

Date Particulars V.N. L.F. Discount Cash Date Particulars V.N. L.F. Discount Cash

1991
Jan.1
”  7
”  12
”  25

1991
Feb1


To Balance b/d
To Riaz & Co.
To Sales a/c
To Salman

To Balance b/d

10

15


2,000
200
1,000
500

1991
Jan.5
”  20
”  27
”  28
”  31


By Zahoor & Sons
By purchase a/c
By Hussan&Sons
By Furniture a/c
By Rent a/c
By Balance c/d

15

500
300
300
100
100
2,400
25 3,700 15 3,700
2,400

Riaz & Co.

1991
Jan. 7


By Cash
By Discount

$
200
10

Sales Account

1991
Jan. 12


By Cash

$
1,000

Salman Account


1991
Jan. 25


By Cash
By Discount

$
500
15

Babar Account

1991
Jan. 18


To Cash

$
1,000



Zahoor Account

1991
Jan. 15


To Cash
Discount

$
500
15



Purchases Account

1991
Jan. 20


To Cash

$
300



Hussan & Sons

1991
Jan. 27


To Cash

$
300



Furniture Account

1991
Jan. 28


To Cash

$
100



Rent Account

1991
Jan. 31


To Cash

$
100



Discount Account

1991
Jan. 31


To Sundries as per Cash book

$

25

1991
Jan. 31


By Sundries as per cash book

15

You may also be interested in other articles from “subdivision of journal” chapter:

  1. Definition and Explanation of Cash Book
  2. Single Column Cash Book
  3. Two Column Cash Book/Double Column Cash Book
  4. Three Column Cash Book
  5. Bank Reconciliation Statement
  6. Petty Cash Book
  7. Purchases Day Book
  8. Purchases Returns Book
  9. Sales Day Book
  10. Sales Returns Book
  11. Bills Receivable Book
  12. Bills Payable Book
  13. Journal Proper

Other Related Accounting Articles:

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