The document discusses the cash book in accountancy for Class 11, highlighting its purpose as a record for all cash receipts and payments, and its dual function as both a journal and a ledger. It details types of cash books, including simple, double column, three column, and petty cash books, along with their features, objectives, and the distinctions between cash accounts and cash books. The text emphasizes the importance of cash books in maintaining accurate financial records and managing cash flow in a business.

1. Cash Book Class 11
In the context of Accountancy Class 11, a cash book is a book of original entry in which all
cash receipts and cash payments are recorded. It is a subsidiary book of accounts, and is
maintained to record all cash transactions in a systematic and organised manner.
The cash book serves as a primary record for all cash receipts and payments, and is used to
keep track of the inflow and outflow of cash in a business. It is an important tool for
maintaining accurate accounting records and for financial management.
In Class 11 Accountancy, students are introduced to the concept of cash book and are
taught to prepare different types of cash books such as single column cash book, double
column cash book, and triple column cash book. They are also taught to record transactions
in the cash book, and to prepare bank reconciliation statements using the information from
the cash book.Overall, the cash book plays an important role in the study of Accountancy
Class 11, and is a fundamental tool for understanding the basics of accounting and financial
management.
Recording of Cash Transaction : Cash book
Meaning —- Cash Book is the book in which all the cash transactions i.e. cash receipts and
cash payments are recorded. In the words of Carter, “It is a book of preliminary accounts in
which receipts and payments of money are recorded.” All cash receipts are written on the
debit side and all payments are written on the credit side. Bank related transactions are also
written in this book.
Cash book is that book which fulfils the purpose of both journal and ledger. Since the primary
entry of transactions is made in the cash book, it is also called the Book of Original Entry.
The balance of the cash and bank accounts of the cash book is written in the trial balance
and the balance sheet. This is the reason why a cash book is considered a principal book as
well as a subsidiary book. (Cash book is both a subsidiary book and a principal book.)
Cash book is a Journal or Ledger

2. Sometimes the question arises whether a cash book is a journal or a ledger. It is a journal
because all cash transactions are recorded in it for the first time from the source documents.
These are then shown in the ledger in the respective accounts.
Cash book is also a ledger (i.e. ledger) because it also serves as a cash account. When the
cash book is prepared, a separate cash account is not maintained in the ledger. As a result,
a cash book is both a journal and a ledger (Cash book is a journal as well as a ledger).
That’s why it can be called ‘Journalised Ledger’. In fact, the cash book is both a subsidiary
book and a ledger. Since the initial accounting of all cash transactions is in the cash book,
this subsidiary is the same and because the cash account is not maintained with it, it is the
ledger.
Features of Cash book
The following are the features of cash book which throw light on its nature:
(1) The cash book records only one aspect of the transaction i.e. cash.
(2) Transactions are recorded in a sequential manner.
(3) Cash receipts are written on the debit side of the cash book while cash payments are
written on the credit side.
(4) The cash book is a journalised ledger. It is both a subsidiary book and a main book.
Objectives of Cash Book
Following are the main objectives of cash book:
(1) To find out the total cash receipts and total cash payments during a given period.
(2) To know the cash balance and bank balance at any point of time.
(3) To verify the correctness of cash in hand and cash in the bank.
Similarities in cash book and Journal
(1) As in the journal, all cash transactions are first recorded in the cash book from the
original documents. Thereafter they are posted in the ledger to various accounts (except
cash account).
(2) Like the Journal, all the transactions are recorded date wise in the cash book.
(3) Narrations are given in the cash book just like in the journal.
(4) Like the Journal, the Cash Book also has an Account Page Number (L.F.).
Similarities with Ledger

3. (1) The format of the cash book is like a ledger. It has two sides – debit side and credit side.
The debit side (i.e. left side) represents cash receipts and the credit side (i.e. right side)
shows cash payments.
(2) Like the ledger, ‘To’ and ‘By’ are used for recording transactions in the cash book.
(3) Cash books also serve as cash accounts. When the cash book is maintained, then the
cash related transactions are neither recorded in the journal nor any other account is made
for cash and bank cash.
(4) The balance of the cash book is worked out in the same way as the account of any
ledger
Distinction between Cash Account and Cash Book
No. Cash Account cash Book
1. It remains as an account in the ledger. It is a separate book in
which cash transactions are
recorded.
2. When cash transactions are recorded in the journal,
it is necessary to prepare a cash account in the
ledger
When cash transactions are
recorded in the cash book,
the cash account is not
created
3. Posting is done from the journal to the cash account. Postings are made from
cash book to other accounts
(except cash account).
4. It records one side of the transaction i.e. cash. It records both the aspects
of the transaction.
Types of Cash Book
There are four types of cash book :
1. Simple Cash Book
2. Double Column Cash Book
3. Three Column cash Book
4. Petty Cash Book
(1). Simple Cash Book

4. Only cash transactions are recorded in it. It is also called Single Column Cash Book.
Therefore, bank related transactions and deduction transactions are not written in this same.
It is a form of cash account. Cash receipts are written on its debit side and cash payments
are written on its credit side. Thus the cash book acts as a cash account. A draft of the
cash book is given below:
Date Particular V.No LF. Amount
₹
Date Particular V.N
o
LF. Amount
₹
The following points are clear from the above sample:
Identical Columns on Both Sides – Both sides of the cash book—debit and credit—have
identical columns; For example, there are five food boxes on both sides.
Date – First year and month are written in this field. Then the date of cash receipts/payments
is recorded.
Particular – In the details of the debit side, the names of those accounts are written in
respect of which cash payments have been received. In the details column of the credit side,
the names of those accounts are written in respect of which cash payments or expenses
have been made. The word To is used in the debit side and By in the deposit side.
Voucher No. – In this column the number of those receipts are written which are related to
receipts and payments.
Ledger folio or L.F – In this column, the page number of the ledger in which the amount
has been debited is written.
Amount – The transaction amount is written in this field.
Two things are worth mentioning here

5. (i) The method of recording the cash book is exactly the same as that of the ledger.
(ii) The sum of the debit side of the cash book is always greater than the sum of the
credit side, it can never be less. Its
The reason is that payment will be made only when there is money in the business
Posting from Cash book
While writing off the cash book, the opening balance is not debited anywhere. The reason for
this is that the cash book is a part of the cash account and the cash account is not opened in
the ledger despite having a cash book. Other accounts which are related to the cash account
or which are mentioned in the cash account are opened separately in the ledger.
(1) The accounts which are written on the debit side of cash, while opening those accounts
in the ledger, the amounts related to them are written on their credit side by writing ‘By
Cash’.
(2) Similarly, while opening those accounts which are on the credit side of the cash balance,
the amounts related to them should be shown in the debit side by writing ‘To Cash’ in the
ledger.
For example ::
(i) Rs 500 was received from A. Here the entry of cash receipt (Debit) will be done in the
debit side of the general cash book and A will be credited i.e. To A will be written. Then on
the ‘credit’ side of A’s account, By Cash A/c will be written.
(ii) paid Rs 200 to B. This will be written in the credit side of Cash Wahi as By B ₹ 200 and
then in the debit side of B’s ​
​
account To Cash A/c ₹ 200 will be written.
Posting is not done in Cash A/c when Cash Book is there because Cash Book itself is Cash
A/c.The process of writing off the cash book can be shown by the following:
Date Particular LF. Amount
₹
Date Particular LF. Amount
₹
To Balance b/d …….. By B 200
To A 500 By Balance c/d 300
₹ 500 ₹ 500
To Balance b/d 500
A’s Account

6. By Cash Account 500
B’s Account
To Cash A/c 200
Balancing of Cash Book
The sum of the debit side of the cash book is more than the sum of the credit side, so the
amount of ‘difference’ of both the sides is shown in the amount column by writing By Balance
c/f or c/d in the column containing details of the credit side. . After that sum both the sides.
Then on the next day write the same balance by writing To Balance b/f or b/d on the debit
side.
Thus, the cash book always has a ‘debit balance’ because the amount of cash payments
can never exceed the sum of cash receipts (cash in hand).
If the totals of both its sides are equal, then the question of remainder will not arise.
Double Column or Two Column Cash Book
Meaning – A two-column or two-column cash book is a 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 the bank. Similarly, on the credit side, one
column is for cash and the other is for the bank. A two column cash book may have two
columns each for cash and discount or bank and discount.
Types – Double entry cash book can be of three types:
(i) Cash Book with Cash and Bank.
(ii) Cash Book with Cash and Discount.
(iii) Cash Book with Bank and Discount.
Three Column Cash Book
Meaning – When three columns (columns) are made in the debit and credit side to write the
amounts related to cash, bank and discount or discount in the cash book, then it is called a
three column cash book. goes. It is known that in the three-column cash book, the balance is
taken out to balance the amounts of the ‘Cash’ and ‘Bank’ column, but the deduction /
discount column is only totalled (Total), not balanced (Discount column).

7. Petty Cash Book
The petty cash book is the subsidiary of the cash book itself. It is used in big businesses.
Pickles wrote, “In large businesses there are many petty expenses which are paid in cash. A
lot of time is wasted if all those expenses are written in detail in the cash book. To save time,
a separate cash is kept in the same and petty expenses are accounted for in it. It is called a "
petty cash book.”
The petty cash book is a subsidiary of the cash book. This is the book in which detailed
accounting of small expenses related to business is done; Such as post-telegraph expenses,
cart fare, coolie fare, tonga fare, tea-bean, stationery expenses etc. The work of writing the
retail cash book is done by the petty cashier, who is called Petty Cashier.
A petty cashier is a person who is authorised to pay for petty expenses and write them in the
cash book. The head cashier gives some amount to the retail cashier at the beginning of the
month or 1 week, out of which he (retail cashier) pays small expenses. The money he
receives from the head cashier for these expenses, at the end of the month or week (as the
arrangement may be), he prepares his account with all the vouchers and gives it to the head
cashier. Some merchants use printed vouchers. If printed vouchers are not used, a simple
receipt must be obtained.
System of Petty Cash Book
(1) Imprest System
(2) Ordinary (Non – imprest) System
Frequently Asked Questions
Qs 1. What are the types of cash book Class 11?
Ans. There are 4 Type of Cash Book Class 11
1. Simple Cash Book
2. Double Column Cash Book
3. Three Column cash Book
4. Petty Cash Book
Qs 2. What is three column cash book class 11?

8. A Three – Column Cash book or treble column cash book is one in which there are three
Columns on each side – Debit and Credit
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