Two Column Cash Book Example

We can also make the double column cash book. In this double 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 double 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 (Double Column)								Cr.
Date	Receipts	L.F.	Discount Allowed	Amount	Date	Payments	L.F.	Discount Received	Amount
2013 Jan. 1	To Balance b/d			3200	2013 Jan. 2	By Mohan and sons a/c		35	765
Jan. 3	To Sales a/c			850	Jan. 4	By office machinery a/c			2000
Jan. 4	To old newpaper a/c			35	Jan. 8	By wages and salaries a/c			1000
Jan. 4	To Bank a/c			800	Jan. 9	By Balance c/d			4120
Jan.5	To Raghav a/c		50	1150
Jan.6	To Furniture a/c			600
Jan.8	To Prashant a/c		40	800
Jan.9	To Bad debts recovered a/c			450
			90	7885				35	7885
Jan. 10	To Balance b/d			4120

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.

Related : Three Column Cash Book Example