Two Column Cash Book

We can also make the two column cash book. In this double or two column cash book, we have to record all the transactions relating to cash and discount. If we receive the money from debtor, we allow the discount. If we pay the money to creditor, we receive the discount. So, both record will also be in the double column cash book. With following example, you can understand it.


Enter the following transactions of Mohit in two column cash book :

Jan. 1 2013 : Balance of cash in hand = Rs. 3200
2 : Paid to Mohan and Sons (discount allowed Rs. 35) = Rs. 765
3 : Cash Sales = Rs. 850
4. Sales of old newspapers = Rs. 35
4  : Paid for office machinery = Rs. 2000
4 : Withdraw from Bank = Rs. 800
5 : Received from Raghav ( in full settlement of his debt of Rs. 1200) = Rs. 1150
6. Sale of Old Furniture = Rs. 600
8 : Receive from Prashant (allowed him discount Rs. 40) = Rs. 800
8 : Paid wages and salaries in cash = Rs. 1000
9 : Received from Akram khan against debt previously written off = Rs. 450



Dr.Cash Book (Two Column)Cr.
DateReceiptsL.F.Discount AllowedAmountDatePaymentsL.F.Discount ReceivedAmount
2013 Jan. 1To Balance b/d32002013 Jan. 2By Mohan and sons a/c35765
Jan. 3To Sales a/c850Jan. 4By office machinery a/c2000
Jan. 4To old newpaper a/c35Jan. 8By wages and salaries a/c1000
Jan. 4To Bank a/c800Jan. 9By Balance c/d4120
Jan.5To Raghav a/c501150
Jan.6To Furniture a/c600
Jan.8To Prashant a/c40800
Jan.9To Bad debts recovered a/c450
907885357885
Jan. 10To Balance b/d4120

Remember : We do not calculate the balance of discount column because discount column is not as discount account. We will again open the discount allowed account and discount received account where we will calculate the balance of discount which will go to trail balance.
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Education of Accounting : Two Column Cash Book
Two Column Cash Book
Education of Accounting
http://education.svtuition.org/2013/12/two-column-cash-book.html
http://education.svtuition.org/
http://education.svtuition.org/
http://education.svtuition.org/2013/12/two-column-cash-book.html
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