SU13-DTVI SJON OF JOUl~AL : ~ AS}!

BOOK __ 69

/llu 6 traJion 1 . ....

· On 1st Nov., 20 18 Ba by a nd Rnnmy Store, Katihar sta rted bus iness . The following were the
trBllsactions for tbe month of Nov . 2018 :
Detai/,q Amount
_,___
Date
20 18
t
Started bu siness wi tJ, ca sh 30,000
Nov. 1
Nov. 4 Cash received from Gunneet 12,000
. Insurance pa id (Annual Instalment) 6,000
NOV , 8 I

Nov. 13 Purchased furni t ure 13,800

Nov. 16 Sold goods for cash 28,000
Nov. 17 Purchased goods from Mud.it in cash 17,400
Nov. 20 Purchased stationery 1,100
Nov . 24 Cash paid to Rukmani in full settlement of account 12,500
Nov. 27 Sold goods to Kamal for cash 18,200
Nov . 30 Paid monthly rent 2,500
Nov. 30 Paid salary 3,500
f
Nov. 30 Deposited in bank 8 000
Enter the above transactions into Simple Cash Book.
Solution
Dr. Cash Book Cr.
Date Particulars J.F. Amount Date Particulars J.F. Amount
2018 f 2018 f
Nov. 01 To Capital Ale 30,000 Nov. 08 By Insurance Ale 6,000
Nov. 04 To Gurmeet 12,000 Nov. 13 By Furniture Ale 13,800
Nov. 16 To Sales Ale 28,000 Nov. 17 By Purchases Ale 17.400
Nov. 27 To Sales Ale 18,200 Nov. 20 By Stationery Ale 1,100
Nov. 24 By Rukmani 12,500
I Nov. 30 By Rent Ale I 2,500
I
Nov. 30 By Salary Ale 3,500
Nov. 30 By BankA/c I
8,000
Nov. 30 By Balance r/d 23.400
88,200 88,200
De(!. 01 ITo Balance b/d 23,400
I
DOUBLE COLUMN CASHBOOK
Meaning: The Cash Book which contains columns for cash and discount or bank and
discount or cash and bank is called as double column Cash Book.
Kinds: Following are the kinds of double column Cash Book:
(i) Cash book with cash and discount columns
(ii) Cash book with bank and discount columns
(iii) Cash book with cash and bank columns
(i) Cash book with Cash and Discount Columns : This type of cash book, cash column is
meant for recording cash receipts (on debit side) and cash paid (on credit side). Discount column
0 ~ the debit side represents cash discount allowed to customers. The credit side column of

discount indicates discount received from creditors. Discount Account belongs to the category
nd
of nominal accounts. Hence according to Traditional Approach. Debit expenses or los~es a
Credit incomes and gains. Discount account is debited when discount is allowed and discount
account credited when discount is received.
 70 FINANCIAL ACCOlTNTING

ll/ustrat'ion 2
From the following particulars prepare a Double Column Cash Book :
2018
Dec. l Cash in hand t
20,00o
Dec. 2 Purchased goods for Cash
1a ,000
Dec. 3 Cash Sale~
5,00()
Dec. 4 Paid Cash to Shvam .., 3,00()
Dec. 5 Paid Ram t 2, 980 in ful] Settlement of his account
3,000
Dec. 7 Purchased M.achinery for Cash
2,000
Dec. 8 Received Cash from Shyam
3,000
Allowed him discount 50
Dec. 9 Deposited Cash into Bank
I

2,000
Dec. 10 Withdrew Cash for personal use
1,000
Dec. 15 Paid Salaries for Cash
500
Dec. 15 Withdrew Cash from Bank for office use
1,000
Solution
Dr . Ca s h Book (with Cash and Discount Columns ) Cr.
Date Particulars Amount Amount
L .F. Date Particulars L.F.
Dis. Cash
1

Dis. Cash
I

2018 't t 2018 I t t

Dec. 1 To Balance b/d 20,000 Dec. 2 By Purchases Ale 13,000
Dec. 3 To Sales Ale 5 ,000 Dec. 4 By Shyam 3,000
Dec. 8 To Shyam 50 3 ,000 Dec. 5 By Ram 20 2,980
Dec. 15 To Bank Ne 1,000 Dec. 7 By Machinery Ale I 2,000
Dec. 9 By BankA/c 2,000
Dec. 10 By Drawings Ale 1,000
I Dec. 15 By Salaries Ale I 500
I Dec. 31 By Balance d d I 4,520
I

2019 I
I t 50 29,000 t ; 20/29.000
Jan. 1 To Balance b/d 4 ,520 !
/Uustr aJion 3
Enter the following transa ctions in the Cash Book with Bank and Disco unt colum ns of Mr.
A. N.
Agarw al. Ranch i. .All cash receip ts are promp tly deposi ted into Bank and all paym ents
are made by issuin g
cheque :
2019 f
J u]y 1 Balanc e at Bank 16,000
J uly 2 Receiv ed C-heque from Shyam 2,700
J uly 3 Bough t Furnit ure 6,000
- Y 4 Bough t Fans
Jul 450
July 5 Paid Salary 300
July 6 Paid to Sahan i 990
Discou nt allowe d by him 50
July 7 Received Chequ e from Ruby 1,000
 July 8 Paid Insura nce Pre1niun1 1,000
July 9 Received a Cheque fro1n J agj it for { 1,800 in full Settelment
of the account oft 2,000
July 10 Commission charged by Bank 50
July 11 Received Cheque from Zaved 4,,050
Allowed hin1 discount 100
July 16 Purchased by Cheque 5,000
July 18 Cash Sales 10,000
July 19 Paid Tax 2,000
July 30 Paid Salaries 2,500
July 31 Interest allowed by Bank 1,000
Solution
Cash Book with Bank and Discount Columns of
Dr. Mr. A. N. Agarwal, Ranchi Cr.
Date Particulars L.F. Dis- Bank Date Particulars L.F. Dis-
Bank
count count
2019 'f 'f 2019 f f
July 1 To Balance b/d 16,000 July 3 By Furniture Ale I 6000
July
'
2 To Shyam 2,700 July 4 By FansA/e I 450
July 7 ToRuby 1,000 July 5 By Salary Ale 300
July 9 To Jagjit 200 1,800 July 6 By Sahani 50 990
July 11 To Zaverl 100 4,050 July 8 By Insurance Premium Ale 1,000
I
July 18 To Sales Ale 10,000 July 10 By Bank ComroiSfilon Ale 50
July 31 To Interest Ale 1,000 July 16 By Purchases Ale I 5,000
July 19 By Tax Ale 2,000
July 31 By Salaries Ale 2,500
--
J uly 31 By Balance c/d 18,260
- -
300 ~55Q_ 50 36,550
- - -- - -
Aug. 1 \ To Balance b/d 18,260
lllustration 4
Record the following transaction s in a cash book with cash and bank column :
2019 t
Jan. 1 Bank overdraft 12,000
Cash in hand 2,300
Jan. 7 Cheque received from Ram t 4,000 and discount allowed t 200
,Jan. 8 Deposited the ab-Ove cheque into Bank 4,000
,Jan. 12 Deposited in the Bank 200
Jaa 15 Received a money order 500
Jan. 16 Money withdrawn from Bank for office use 300
Jan. 18 Bank Charges 20
~Jan . 20 Interest on Bank ()verdraft 1,000
Jan. 21 Cheque received from Mohan off 5,000 and endorsed it to Shyam
Solation
Dr. Cash Book (Cash & Bank Column) Cr.

A1,1·t i... .t.i a.rs L .F. Cash Bank I Date Particulars L .F. Cash Bank
--
-~
- -- ~- f
- -
f 2019 f f
201~
J an l T~ Balance h,d 2,300 Jan. 1 By Balance b/d 12,000
J an. ~
....,. T o ~ in Rand Ale 4,000 Jan. 12 By Bank Ale C 200
Jan. ~ To Cssb A'c C
1
I 200 Jan. 16 By Cash Ale C 300
Jan.. 15 To Ma.n-ey Order 500 Jan. 18 By Bank Charges Ale 20
Jan~ 16 To Bank A,;'c C 300 Jan.20 By Int. on Overdraft 1,000
Jan 31 To B- laoee ctd I
0
9,120 Jan.31 By Balance c/d 2,900
' 3 ,100 I 13,320 3,100 13,320
Feb. l To Ba lance hid 2,900 i Feb.1 By Balance bid 9,120

_\"cu : l . C.neque received from Ram on Jan. 7 will not be entered in Cash Book. Further, it is deposited in the bank on
Jan. K so the entry will be recorded in Dr. side of Cash Book.
Explam::rhon : ti ) Journal entry on Jan. 7 will be: f f
Cheques in Hand Ale ... Dr. 4,000
Discount Ale ... Dr. 200
To Ram 4,200
(Being cheque received from Ram)
( ii ) Journal entry on Jan. 8 will be :
BankA/c ... Dr. 4,000
To Cheques in Hand Ale 4,000
(Being Ram's cheque deposited in the bank)
2. Cheque received and endorsed to other p arty will not be recorded in Cash Book, because this transaction will
not affect Dr. side and Cr. side of Cash Book .
 Thre e colum n Cash Book is suita ble for big ente rpris es , w hich mak e an a r eceiv e IJ<1.Y
.u.1.-v.u. _,...,

in cash and by cheq ues as well as recei ve and allow cash disco unts.
Illus tratio n 5
From the following trans actio ns, prepa re a three colum n Cash Book : f
2019 415
Mar. 1 Balan ce in hand 2,530
Balan ce at Bank 950
Mar. 2 Paid wage s by chequ e 150
Mar. 5 Cash purch ases 530
Mar. 15 Received a chequ e from Krish na 20
Allowed him disco unt
400
Mar. 16 Paym ent made by chequ e to Moha n 15
Disco unt allow ed by him
150
Mar. 18 Cash Sales
300
Mar. 20 Furn iture purch ased and paid by chequ e
Mar. 22 Bank credi ted inter est 200
Mar. 25 Received a chequ e from Sure sh 250
Allowed him disco unt 10
Mar. 30 Cash depos ited into Bank 300
 .::,uo-u1 v 101v1'1 v r tJVUI\.J.'H\L: vl\~tt tlUUK
- - -- - -

Solution
Three Column Cash Book

I L. Amount I

Particulars - Date Particulars L. Amount

Date F. D;s. Cash Bank
1--- - l F. LDis. : (!_ash jian~
2019 I t t t 2019 t' f f
Mar. 01 I To Balance bid 415 2,530 Mar. 02 By Wages Ale 950
1
Mar. 15 To Krishna 20 530 Mar. 05 By Purchases Ne
Mar. 18 To Sales Ale 150 Mar. 16 By Mohan
l 150

I
15 400
Mar. 22 To Interest Ale 200 Mar. 20 By Furniture Ne 300
I
Mar. 25 To Suresh 10 250 Mar. 30 By Bank Ale IC 300
Mar. 30 To Cash Ale C 300 Mar. 31 By Balance dd 115 2,160
~
-- ,...._
30 565 3,810 565 3,810
~

I
I 15
April 1 ~ To Balance dd 115 2,160
Illustration 6
Prepare a Three Column Cash Book from the following transactions :
2019 t
Jan. 1 Opening Balance of Cash 1,600
Bank overdraft 1,000
Jan. 7 Received a cheque from Ashok 4,950
Allowed him discount 50
Jan. 9 Cash deposited into Bank 1,000
Jan . 11 Cash paid by Yogendra 100
Jan . 15 Withdrew from Bank for private expenses 100
Jan. 20 Received repayment ofloan f 3,000 and deposited out of it f 2,000 in Bank
Solution
Three Column Cash Book
I
L. Amount L. I Amount
Date Particulars Date Particulars
F. Dis. Cash Bank F . Dis. Cash Bank
\
2019 I t t t 2019 t t t
Jan. 01 To Balance b/d 1,600 Jan.01 By Balance bid 1,000
Jan. 07 ToAshok 50 4,950 Jan. 09 By Bank Ale 1,000
IC
Jan. 09 To CashA/c C 1,000 J an. 15 By Drawings Ale 100
Jan . 11 To Yogendra 100 Jan. 20 By Bank Ale IC I 2,000
Jan.20 To Loan Ale 3,000 J an.31 By Balance dd 1,700 6,850
Jan. 20 To CashA/c C 2,000
50 4,700 7,950
-
4,700 7,95_0
r
Feb. 1 To Balance bid 1,700 6,850 I