Cash book is used to record and manage cash and bank transactions in one place. The rules of real accounting apply in the cash book because cash and banks are assets. All transactions received in cash and bank are recorded on the debit side of the cash book and all transactions paid from cash and bank are recorded on the credit side of the cash book.
Cash book is divided into different parts so that the business can use it as per its requirements like single-column cash book, double-column cash book, triple-column cash book, and petty cash book, etc. Every cash book has its own advantages and disadvantages.
Table of Contents
Types of Cash Book
Following are the types of cash book:
1. Single-Column Cash Book:
Single Column Cash Book is also known as Simple Cash Book which is used to record and manage only cash transactions. If you want, you can also use it for bank in place of cash, but as per cash book, single column cash book is used only for cash transactions.
In single-column cash book, only one amount column is provided on each side which is used for cash. In this, all cash received transactions are recorded on the debit side and all cash paid transactions are recorded on the credit side.
Single-column cash book consists of the following columns:
| Debit Side | Credit Side |
| 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount | 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount |
Format of single-column cash book:
| Date | Particulars | V. No | L.F. | Amount | Date | Particulars | V. No. | L.F. | Amount |
2. Double-Column Cash Book:
Double-column cash book is used to record two types of transactions together at one place such as cash and bank, cash and discount, bank and discount. The Discount column is used only when sales and purchases involve discounts.
In double-column cash book, only two amount columns are provided which are used for Cash and Bank or Cash and Discount or Bank and Discount. In this, all received transactions are recorded on the debit side and all paid transactions are recorded on the credit side.
Double-column cash book consists of the following columns:
| Debit Side | Credit Side |
| 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount – 1 6. Amount – 2 | 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount – 1 6. Amount – 2 |
Format of double-column cash book:
| Date | Particulars | V. No | L.F. | Amount – 1 | Amount – 2 | Date | Particulars | V. No | L.F. | Amount – 1 | Amount – 2 |
3. Triple-Column Cash Book:
Triple-column cash book is used to record three types of transactions, such as cash, bank, and discount, together at one place. This cash book is best to manage cash, bank, and discount together in one place, but it is a bit complicated as compared to other types.
In triple-column cash book, only three amount columns are provided which are used for cash, bank, and discount. In this, all received transactions are recorded on the debit side and all paid transactions are recorded on the credit side.
Triple-column cash book consists of the following columns:
| Debit Side | Credit Side |
| 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount – 1 6. Amount – 2 7. Amount – 3 | 1. Date 2. Particulars 3. Voucher Number (V. No) 4. Ledger Folio (L.F.) 5. Amount – 1 6. Amount – 2 7. Amount – 3 |
Format of triple-column cash book:
| Date | Particulars | V. No | L.F. | Amount – 1 | Amount – 2 | Amount – 3 | Date | Particulars | V. No | L.F. | Amount – 1 | Amount – 2 | Amount – 3 |
4. Petty Cash Book:
Many transactions of small amounts take place every day in business. Petty cash book is used to record and manage small amount transactions. With its use, small transactions are not recorded in the main cash book. In this, postage, stationery, vehicle rent, wages, miscellaneous expenses, etc. are recorded.
The main objective of using petty cash book is to reduce the number of transactions from the main cash book. The petty cash book is linked to the main cash book and the one who manages it is called a petty cashier.
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QNA/FAQ
Q1. What is the use of single-column cash book?
Ans: Single-column cash book is used to record and manage cash transactions.
Q2. Is a triple-column cash book complicated?
Ans: Yes, the triple-column cash book is complicated compared to other types of cash books.
Q3. Does the petty cash book record only petty (small) transactions?
Ans: Yes, only petty transactions are recorded in the petty cash book.
Q4. Which type of cash book is used to record cash, bank, and discount simultaneously?
Ans: Triple-column cash book is used to record cash, bank, and discount simultaneously.
Q5. Write the types of cash book.
Ans: Following are the types of cash book:
1. Single-Column Cash Book
2. Double-Column Cash Book
3. Triple-Column Cash Book
4. Petty Cash Book
