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Double Column Cash Book

A double column cash book records cash and discount amounts in separate columns on both the debit and credit sides. This allows discounts received from customers or allowed to suppliers to be tracked separately from cash transactions. The discount columns are memorandum columns only and do not form the discount account. Amounts from the discount columns are posted to the personal accounts of the relevant customers or suppliers to update their balances. The total of the discount debit column is posted to the debit of the discount account, and the total of the discount credit column is posted to the credit of the discount account.

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5K views2 pages

Double Column Cash Book

A double column cash book records cash and discount amounts in separate columns on both the debit and credit sides. This allows discounts received from customers or allowed to suppliers to be tracked separately from cash transactions. The discount columns are memorandum columns only and do not form the discount account. Amounts from the discount columns are posted to the personal accounts of the relevant customers or suppliers to update their balances. The total of the discount debit column is posted to the debit of the discount account, and the total of the discount credit column is posted to the credit of the discount account.

Uploaded by

Aneeza Anwar
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Double Column Cash Book

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

Credit Side
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 " 12 " 15 " 20 Received from Riaz & Co. $200; discount allowed $10 Cash sales $1,000 Paid Zahoor Sons $500; discount received $15 Purchased goods for cash $300

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" 25 " 27 " 28 " 31

Received from Salman $500; discount allowed $15 Paid Hussan & Sons $300. Bought furniture for cash $100 Paid rent $100

Solution: Cash Book


Debit Side
Date 1991 Jan.1 To " 7 To " 12 To " 25 To Particulars V.N. L.F. Discount Cash Date 1991 Jan.5 By " 20 By " 27 By " 28 " 31 By By By

Credit Side
Particulars V.N. L.F. Discount Cash

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

10 15

2,000 200 1,000 500

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

15

500 300 300 100 100 2,400 3,700

1991 Feb1 To Balance b/d

25

3,700

15

2,400

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