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.
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
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.

Related : Three Column Cash Book Example

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Education : Two Column Cash Book Example
Two Column Cash Book Example
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