Double Column Cash Book Class 11

Double Column Cash Book Class 11
Meaning – By Double Column or two-column cash book is meant that cash book in which there are two columns (columns) of cash in each part. For example, in the debit side of the cash book, one column is for cash and the other column is for bank. Similarly, in the credit side, one column is for cash and the other is for bank. A two column cash book may have two columns each for cash and discount or bank and discount.

Type — Double Column cash book can be of three types

(1) Cash book with cash and Bank

(2) Cash Book with cash and Discount

(3) Cash book with Cash and Discount

(1) Cash book with cash and Bank — Meaning – When two columns are made on the debit and credit side to write cash and bank related amounts in the cash book, then it is called a Double Column Cash Book or Two Column Cash Book.

entry method in Two Column cash Book

First remember that cash receipts are recorded on the debit side and cash payments on the credit side of a two-entry cash book.

In order to record in a double entry cash book, it is necessary to pay attention to the following points.

(1) Opening Balance — (i) (Opening Cash Balance or cash in Hand) is always a debit balance, write it in the debit side of the cash book by writing To Balance b/d in the cash column

(ii) The balance of the bank account can be either a debit balance (in case of bank balance) or a credit balance (in case of overdraft). Therefore, when Bank Balance, Cash at Bank etc. is written, in the debit side of the cash book, write To Balance b/d in the description field and write the amount in the bank column. But if the bank’s overdraft balance is given, then the amount will be written in the bank account by writing By Balance b/d in the details column in the credit side of the cash book.

(Bank Overdraft) — When a person or firm withdraws/withdraws more than the amount deposited in his (bank) account, it is called bank overdraft.

•Bank overdraft is shown as credit balance. Therefore, if a firm has a credit bank balance (i.e. overdraft) at the beginning of the period, it will be written in the credit side of the cash book as ‘By Balance c/d’ and the amount will be shown in the bank account.

•Bank overdraft is a debt/liability that has to be paid. Once the payment is made, the bank overdraft position ends.

1. DoubleColumnCashBookClass11
Meaning–ByDoubleColumnortwo-columncashbookismeantthatcashbookinwhich
therearetwocolumns(columns)ofcashineachpart.Forexample,inthedebitsideofthe
cashbook,onecolumnisforcashandtheothercolumnisforbank.Similarly,inthecredit
side,onecolumnisforcashandtheotherisforbank.Atwocolumncashbookmayhave
twocolumnseachforcashanddiscountorbankanddiscount.
Type—DoubleColumncashbookcanbeofthreetypes
(1)CashbookwithcashandBank
(2)CashBookwithcashandDiscount
(3)CashbookwithCashandDiscount
(1)CashbookwithcashandBank—Meaning–Whentwocolumnsaremadeonthe
debitandcreditsidetowritecashandbankrelatedamountsinthecashbook,thenitis
calledaDoubleColumnCashBookorTwoColumnCashBook.
entrymethodinTwoColumncashBook
Firstrememberthatcashreceiptsarerecordedonthedebitsideandcashpaymentsonthe
creditsideofatwo-entrycashbook.
Inordertorecordinadoubleentrycashbook,itisnecessarytopayattentiontothe
followingpoints.
(1)OpeningBalance—(i)(OpeningCashBalanceorcashinHand)isalwaysadebit
balance,writeitinthedebitsideofthecashbookbywritingToBalanceb/dinthecash
column
(ii)Thebalanceofthebankaccountcanbeeitheradebitbalance(incaseofbankbalance)
oracreditbalance(incaseofoverdraft).Therefore,whenBankBalance,CashatBanketc.

2. iswritten,inthedebitsideofthecashbook,writeToBalanceb/dinthedescriptionfieldand
writetheamountinthebankcolumn.Butifthebank’soverdraftbalanceisgiven,thenthe
amountwillbewritteninthebankaccountbywritingByBalanceb/dinthedetailscolumnin
thecreditsideofthecashbook.
(BankOverdraft)—Whenapersonorfirmwithdraws/withdrawsmorethantheamount
depositedinhis(bank)account,itiscalledbankoverdraft.
•Bankoverdraftisshownascreditbalance.Therefore,ifafirmhasacreditbankbalance
(i.e.overdraft)atthebeginningoftheperiod,itwillbewritteninthecreditsideofthecash
bookas‘ByBalancec/d’andtheamountwillbeshowninthebankaccount.
•Bankoverdraftisadebt/liabilitythathastobepaid.Oncethepaymentismade,thebank
overdraftpositionends.
ImportantNot
(i)Thebalanceinthecashcolumnofthecashbookisalwaysadebitbalance.
(ii)Thebalanceofthebankaccountcanbeeithera‘debitbalance’ora‘creditbalance’.
(iii)CashBalance(DebitBalance)isshownintheassetsideoftheBalanceSheet.
(iv)BalanceatBank(CashatBank)–Debitbalanceisshownintheassetpartofthe
balancesheetandcreditbalanceisshownintheliabilitypart.
(2)TransactionsinvolvingReceiptofCash—Transactionsfromwhichcashisbeing
received.Orthosefromwhomcashisbeingreceivedarewritteninthedebitsideofthecash
book.Forexample,₹500receivedfromcashsales,₹2001receivedfromRam,itwillbe
writteninthedescriptionboxas–ToSalesA/c,ToRam.Theamountwillbeshowninthe
cashcolumn.Ifdiscountisgivenatthetimeofreceiptofcash,thentheamountofdiscount
shouldbeshowninthediscountcolumnofthedebitside.
(3)TransactionsinvolvingPaymentofCash—Transactionsforwhichcashisbeing
givenorcashexpensesarebeingincurredarerecordedonthecreditsideofthecashbook.
Forexample,purchasedgoodsincashfor₹1,000,paid₹500toSohan,paidwages₹50.
ThesewillbewrittenbyPurchasesA/c,BySohan,ByWagesA/cinthedescriptioncolumn
onthecreditsideofthecashbookand₹1,000,₹500,₹50inthecashcolumnrespectively.
Iftheexpensesarebeingpaidbycheque,theamountwillbedebitedtothebankaccount,
thattooonthecreditside.
(4)ReceiptofCheque/BankDraft—(i)(Cheque/BankDraftreceivedanddepositedon
thesameday)—Whenacheck/bankdraftisreceivedfromacustomerorpersonand
depositedinthebankonthesameday,theninthedebitsideoftheCashBookToPersonal
A/c(fromwhomthecheckTheamountwillbewritteninthebank’saccountbywriting/draft
received,theirname)

3. (ii)Cheque/BankDraftreceivedbutnotdepositedonthesamedayordepositedonanother
day)–Insuchasituationtherearetwomethodsofwritinginthecashbook,eitherofwhich
canbeadopted
Firstmethod–(1)Ifthereceivedcheckorbankdraftisnotdepositedinthebankonthe
samedayonwhichitisreceived,thentheamountofsuchcheck/draftwillbetreatedas
cashandwillbewritteninthecashcolumnonthedebitsideoftheCashBook.ToParty’s
PersonalA/cwillbewritteninthedescriptionbox.
ForExample—
Acheckfor₹5,000wasreceivedfromMonuon15.6.2017whichwasnotdepositedinthe
bankonthesameday
cashBookwithBankColumn
DateParticularL
F.
Cash
₹
Bank
₹
DateParticularLF.Cash
₹
Bank
₹
2017
June
15
ToMonu’s
A/c
5,00
0
DoubleColumnCashBookClass11
(2)Whenthereceivedcheque/draftislaterdepositedinthebankonsomeday,itwillbe
writteninthebankcolumnonthedebitsideofthecashbookandinthecashcolumnonthe
creditside.ThismeansthatitsoppositeentrywillbemadeandL.F.‘C’hastobewrittenin
thebox
ForExample—
15.6.2017Acheckfor₹5,000wasreceivedfromMonu.Monu’scheckwasdepositedinthe
bankon17.6.2017.
CashBookwithBankColumn
DateParticularLF.Cash
₹
Bank
₹
DateParticularLF.Cash
₹
Bank
₹
2017
June
15
To
Monu’s
A/c
5,000 2017
June
17
ByBankC5,000
June
17
ToCash
A/c
C 5,000

4. Secondmethod—Whenthecheck/bankdraftreceivedisconsideredascheckinhand:
(1)Onreceiptofcheque/bankdraft,ifthereceivedcheque/draftisnotdepositedinthebank
onthesameday,entryshouldbemadeinJournalProperconsideringitasCheckinHand
chequesinHandA/c.Dr
ToMonu’sA/c
Whenthatcheckislaterdepositedinthebankonanyday–Ondepositingthesaid
cheque/draftinthebank,theamountwillbewrittenonthedebitsideoftheCashBookby
writingToCheckinHandintheBankColumn.
DateParticularLF.Cash
₹
Bank
₹
DateParticularLF.Cash
₹
Bank
₹
ToCheckin
Hand
5,000
ImportantNot—Ifthedateofreceiptofthecheckismentionedinthequestionbutthedate
ofitsdepositisnotmentioned,thenitshouldbeassumedthatthesaidcheckhasbeen
depositedinthebankonthesameday.
(5)PaymentByCheck—Ifpaymentismadebycheque,itwillbeaccountedforonthe
creditsideofthecashbook.Thenameoftheitemonwhichtheexpenditurehasbeen
incurredwillbewritteninthedescriptioncolumnandtheamountwillbewritteninthebank
column.Forexample,ifsalaryispaidbycheckfor₹300,thenitwillbewrittenasBySalary
A/c₹300
(6)DishonourofCheque—Ifacheckisdishonouredforanyreason,itisdebitedtothe
creditsideofthecashbookbyByPersonalA/c(bywritingthenameoftheparty)andthe
amountisdebitedtothebankaccount.
(7)TransferorEndorsementofCheque—Ifaperson’scheckislatertransferredtoathird
person,itisaccountedforinthecashaccountofthecreditside.Inthedescriptionbox,the
nameofthepersontowhomthecheckistransferrediswritten.
(8)BankCharges—Ifthebankchargesthecustomerforitsservice;Forexample,Bank
Charges,CollectionChargesorBankCommission,thenitisaccountedforinthebank
accountofthecreditsideandthenameofsuchexpenditureiswritteninthedetailsaccount.
(9)InsolvencyofDebtors—(i)Whenadebtorbecomesinsolvent,theactualcash
receivedfromhispropertywillbewritteninthecashcolumnonthedebitsideofthecash
book.Iftheamounthasbeenreceivedthroughacheckandthecheckhasbeendepositedin
thebank,thentheamountwillbewrittenundertheBankColumn.

5. (ii)BadDebtswillbeenteredinJournalProper-
BadDebtsA/c.Dr
ToDebtorsA/c
(Beingtheamountofbaddebtsrecorded)
contraentry
Inthejournalinwhichbothcashandbankarerelatedtoeachother,entriesaremadeon
bothsidesofthecashbook.Thistypeofentryiscalleddoublesidedentryoroppositeentry
andforthistypeofentrytheletterCiswritteninredinkinthefieldcontainingthe
account-pagenumber(L.F.)whichmeans‘opposite’or‘opposite’..Thereversesideentry
doesnotrequireetchinginthelaser
Accountonbothsides(ContraEntry)inthefollowingcircumstances:
(i)Ondepositingrupeesorchecksinabank:
(a)TheamountwillbewritteninthebankaccountbywritingToCashA/conthedebitside.
(b)BywritingByBankA/conthecreditside,theamountwillbewritteninthecashcolumn.
(ii)onthewithdrawalofmoneyfromabankwhenthemoneyisdrawnforofficeuse:
(a)BywritingToBankA/conthedebitside,theamountwillbewritteninthecashcolumn.
(b)BywritingByCashA/conthecreditside,theamountwillbewritteninthebankaccount.
(iii)Whenacontraryentryismadetoreversetheeffectofanearlierentry.
(Posting)—Inatwo-columncashbook,thecashandbankaccountsperformthefunctions
ofcashandbankaccountrespectively.Hence,boththeseaccountsarenotopenedinthe
ledger.Infacttheydonotneedtobeenteredintheledger.
BalancingofDoubleColumnCashBook
Thebalanceofthecashbookistakenoutinthesamewayastheledger.Keepinmindthat
whenthemerchantpreparesthecashbook,aseparatecashaccountisnotopenedinthe
ledger.Againitistobenotedthattherewillalwaysbeadebitbalanceinthecashbook(i.e.
thetotalonthedebitsidebeingmorethanthetotalonthecreditside).Yes,bankaccount
balancecanbe‘Debitbalance’or‘Creditbalance’.Incaseofoverdraft,thebank’sdeposit
willbethebalance.Whenacustomerwithdrawsmorethantheamountdepositedinthe
bank,thenthatsituationiscalledbankoverdraft.
(ii)CashbookwithcashandDiscount

6. Inthistypeofcashbook,therearetwocellseachfortheamountonthedebitandcredit
side.FirstmealforcashandsecondmealItisfordiscount
Remember—(a)Whenthemerchantreceivescashfromanywhereorfromanysource,itis
accountedforinthecashaccountonthedebitside.Thediscountgivenatthetimeofreceipt
ofcashiswritteninthediscountcolumnonthedebitside.
(b)Similarlywhenapaymentismadetosomeoneoranexpenditureisincurredonanitem,
itisrecordedonthecreditsideandtheamountiswritteninthecashaccount.Thediscount
availablewhenpayingcashisshowninthe‘Discount’column.
(Posting)—Cashbookworksasacashaccount.Hence,cashaccountisnotopenedin
theledger.Butsincethecashbookdoesnotworkasa‘DiscountAccount’,itisnecessaryto
opena‘DiscountAccount’(DiscountA/c).
Itsaccountingissimilartothatofanordinarycashbook.Theaccountofdiscountisalso
debitedinthesamewayi.e.theaccountwhichisdebitedonthedebitsideiscredited
separatelyfromtheamountofcashanddiscount.Similarly,theaccountwhichisdebitedon
thecreditsideisdebitedseparatelybytheamountofcashanddiscount.
Rememberthatthebalanceofthecashcellistakenout,butthebalanceofthediscountor
discountcellisnottakenout,rathertheyareaddedonbothsides.Thepairsof‘Discount’
accountsareenteredintheledgertomakedoubleentry.
(iii)CashBookwithBankandDiscount
Whenthemerchantdepositsthedailycashinthebankandmakesallthepaymentsthrough
thebank(i.e.cheque),thecashinthecashbook
Bank’scolumniskeptinsteadoffood.
(a)Whenmoneyisreceived,itiswritteninthebankaccountonthedebitsideofthecash
bookandwhenpaid,itiswritteninthecreditside.
(b)Similarly,whendiscount/reduction/discountisgiven,theentryismadeinthediscount
columnonthedebitsideandwhenthediscountisreceived,theentryismadeinthe
discountcolumnonthecreditside.
Posting—Inthisalsothesameprocessofpostingisadoptedwhichisadoptedincashand
discountedcashbooks.Thebalanceinthebankaccountistakentotrialbalance.Bank
accountswillnotbeopenedintheledger.Debitsideandcreditsideofthediscountcellare
addedseparately,theirbalanceisnottakenout.Intheledger,thetotalofthedebitsideis
debitedandthetotalofthecreditsideiscreditedtothediscountaccount.Balance
calculation–Byaddingthedebitsideofthebankaccount,subtractingtheamountsofthe
creditsidefromit,thebalanceofthebankistakenout.
DiscountReceivedearlier,disallowedlaterbytheCreditors

7. •Fordishonourofcheque—Ifthecreditordishonoursthedeductionduetodishonourof
checkreceivedearlier,theninthedebitsideofthecashbook,theamountofthe
dishonouredcheckisenteredinthebankcolumnandthenameofthecreditorisenteredin
thedescriptioncolumn.
•Toeliminatethededuction-–Toeliminatetheearlierdeduction,thefollowingentrywillbe
madeinJournalPropersothatDiscountReceivedA/ccanbeclosed–
DiscountReceivedA/c
DiscountReceivedA/c
ToCreditors A/c
(Beingtheamountofdiscountreceivedearlier,reversedonchequebeing
Dishonoured)
DiscountReceivedearlier,disallowedlaterbytheCreditors
•Fordishonourofcheque—Ifthecreditordishonoursthedeductionduetodishonourof
chequereceivedearlier,theninthedebitsideofthecashbook,theamountofthe
dishonouredchequeisenteredinthebankcolumnandthenameofthecreditorisenteredin
thedescriptioncolumn.
•Toeliminatethededuction–-Toeliminatetheearlierdeduction,thefollowingentrywillbe
madeinJournalPropersothatDiscountReceivedA/ccanbeclosed–
CashBook(withBankcolumn)
DateParticularLF.Cash
₹
Bank
₹
DateParticularLF.Cash
₹
Bank
₹
2017
June
16
To
Kishor,s
A/c
15,000
FORExample
On18.6.2017,informationwasreceivedfromthebankthatthechequedrawnonKishorin
fullandfinalpaymentof`16,000tohisaccounthasbeendishonouredduetoinsufficient
balanceintheaccount.Recorditinthecashbookandjournalproper.
InJournalProper
DateParticular LF.Dr.Cr.
2017DiscountA/c 1,000

8. Jan16 ToKishor’sA/c
(BeingtheAmountofDiscountreceived
dishonourofcheque)
1,000
Discountallowedearlierbutdisallowedlateron
Ifthecheckreceivedfromthecustomers/debtorsisdishonoured,thentheoppositeentryis
alsomadeforthedeductionallowedearlier-
•DiscountchequeFordishonouredcheque,thenameofToDebtors/Customeriswrittenin
thedetailscolumnonthecreditsideofthecashbook,theamountofthecheckiswrittenin
theBankColumn.
•TodisallowDiscountAllowedi.e.foroppositeentrythefollowingentryismadeinJournal
Proper-
Debtor’sA/cDr
ToDiscountAllowedA/c
(Beingthediscountallowedreversedonchequebeingdishonoured)
DiscountingofBillsReceivablefromtheBank
Billsreceivablefromdebtorscanbediscountedbeforematurity.Forthisthebankcharges
somefeewhichiscalledDiscountingCharges.Thebankdeductstheamountofdeduction
fromtheamountofthecheque,thatis,depositsthenetamountinthecustomer’saccount.
Forexample,ifabillof₹2,000isdiscountedbyabankfor₹1,950,theninthedebitsideof
thefirm’scashbook,thenetamountwillbeshownintheBankcolumnandtheamount
deductedbythebankwillbeshownintheDiscountcolumn.ToBillsReceivableA/cwillbe
writteninthedescriptioncolumn.
DateParticularLFDisc.
ount
Cash
₹
Bank
₹
DateParticula
r
LF
.
Disc.
ount
Cas
h
₹
B
₹
ToBill
Receivable
A/c
50 1,950
LedgerpostingofTwoColumnCashBook
Writingoffthedebtpart:
Rule1-Thetransactionsrecordedinthedebitpartofthecashbookarewritteninthecredit
partoftheledgeraccounts.

9. Rule2-Inthedescriptioncolumnoftheledger,ByCashA/ciswrittenforcashtransactions
andByBankA/ciswrittenforbanktransactions.
Rule3-ContraEntryi.e.transactionsbetweencashandbankarenotenteredintheledger.
Writingoffthepaymentsidei.e.creditside:
Rule1-Transactionsrecordedinthecreditpartofthecashbookarewritteninthedebtpart
oftheledgeraccounts.
Rule2-ToCashA/ciswrittenforcashtransactionsandToBankA/ciswrittenforbank
transactions.
Rule3-Contraentryisnotpostedintheledger
ExampleofDoublecolumncashBook
Qs1.PrepareaDoublecolumncashbookwithcashandBankColumnandbalanceit
1-12-2016Cashinhand2,700
CashatBank14,200
3-12-2016ReceivedachequefromMr.A.Kumar3,100
4-12-2016PaidMr.A.Bosebycheque860
5-12-2016Soldgoodsforcash1,800
10-12-2016Paidtexesbycheque150
12-12-2016Broughtpostagestampsforcash50
18-12-2016Mr.S.Sainipaidhisduesbycheque3,500
19-12-2016DepositedthechequeofMr.A.KumarintoBank3,100
20-12-2016withdrewfromBank1,500
23-12-2016SoldGoodsbyCheque4,000
27-12-2016Broughtgoodsbycheque5,000
31-12-2016withdrewfromBankforpersonaluse2,000
Solution—CashBookwithcashandBank

10. Seethesolutiononarticle
FrequentlyAskedQuestions
Qs1.Whatisdoublecolumncashbookclass11
Ans.Doublecolumncashbookclass11(doublecolumncashbook)hastwocolumnson
bothdebitandcreditsides-onetorecordcashtransactionsandonetorecordbank
transactions.
Qs2.Whatarethetypesofdoublecolumncashbookclass11
Ans.Thereare3typeofdoublecolumncashbookclass11
DiscountandCashColumn.
2.CashandBankColumn.
3.DiscountandBankColumn.
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