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.
Important Not
(i) The balance in the cash column of the cash book is always a debit balance.
(ii) The balance of the bank account can be either a ‘debit balance’ or a ‘credit balance’.
(iii) Cash Balance (Debit Balance) is shown in the asset side of the Balance Sheet.
(iv) Balance at Bank (Cash at Bank) – Debit balance is shown in the asset part of the
balance sheet and credit balance is shown in the liability part.
(2) Transactions involving Receipt of Cash — Transactions from which cash is being
received. Or those from whom cash is being received are written in the debit side of the cash
book. For example, ₹ 500 received from cash sales, ₹ 2001 received from Ram, it will be
written in the description box as – To Sales A/c, To Ram. The amount will be shown in the
cash column. If discount is given at the time of receipt of cash, then the amount of discount
should be shown in the discount column of the debit side.
(3) Transactions involving Payment of Cash — Transactions for which cash is being
given or cash expenses are being incurred are recorded on the credit side of the cash book.
For example, purchased goods in cash for ₹ 1,000, paid ₹ 500 to Sohan, paid wages ₹ 50.
These will be written by Purchases A/c, By Sohan, By Wages A/c in the description column
on the credit side of the cash book and ₹ 1,000, ₹ 500, ₹ 50 in the cash column respectively.
If the expenses are being paid by cheque, the amount will be debited to the bank account,
that too on the credit side.
(4) Receipt of Cheque / Bank Draft — (i) (Cheque /Bank Draft received and deposited on
the same day)—When a check / bank draft is received from a customer or person and
deposited in the bank on the same day, then in the debit side of the Cash Book To Personal
A/c (from whom the check The amount will be written in the bank’s account by writing / draft
received, their name)

(ii) Cheque/Bank Draft received but not deposited on the same day or deposited on another
day) – In such a situation there are two methods of writing in the cash book, either of which
can be adopted
First method – (1) If the received check or bank draft is not deposited in the bank on the
same day on which it is received, then the amount of such check / draft will be treated as
cash and will be written in the cash column on the debit side of the Cash Book. To Party’s
Personal A/c will be written in the description box.
For Example —
A check for ₹ 5,000 was received from Monu on 15.6.2017 which was not deposited in the
bank on the same day
cash Book with Bank Column
Date Particular L
F.
Cash
₹
Bank
₹
Date Particular LF. Cash
₹
Bank
₹
2017
June
15
To Monu’s
A/c
5,00
0
Double Column Cash Book Class 11
(2) When the received cheque/draft is later deposited in the bank on some day, it will be
written in the bank column on the debit side of the cash book and in the cash column on the
credit side. This means that its opposite entry will be made and L.F. ‘C’ has to be written in
the box
For Example —
15.6.2017 A check for ₹ 5,000 was received from Monu. Monu’s check was deposited in the
bank on 17.6.2017.
Cash Book with Bank Column
₹
Bank
₹
₹
Bank
₹
2017
June
15
To
Monu’s
A/c
5,000 2017
June
17
By Bank C 5,000
June
17
To Cash
A/c
C 5,000

Second method — When the check / bank draft received is considered as check in hand:
(1) On receipt of cheque/bank draft, if the received cheque/draft is not deposited in the bank
on the same day, entry should be made in Journal Proper considering it as Check in Hand
cheques in Hand A/c. Dr
To Monu’s A/c
When that check is later deposited in the bank on any day – On depositing the said
cheque/draft in the bank, the amount will be written on the debit side of the Cash Book by
writing To Check in Hand in the Bank Column.
₹
Bank
₹
₹
Bank
₹
To Check in
Hand
5,000
Important Not — If the date of receipt of the check is mentioned in the question but the date
of its deposit is not mentioned, then it should be assumed that the said check has been
deposited in the bank on the same day.
(5) Payment By Check — If payment is made by cheque, it will be accounted for on the
credit side of the cash book. The name of the item on which the expenditure has been
incurred will be written in the description column and the amount will be written in the bank
column. For example, if salary is paid by check for ₹ 300, then it will be written as By Salary
A/c ₹ 300
(6) Dishonour of Cheque — If a check is dishonoured for any reason, it is debited to the
credit side of the cash book by By Personal A/c (by writing the name of the party) and the
amount is debited to the bank account.
(7) Transfer or Endorsement of Cheque — If a person’s check is later transferred to a third
person, it is accounted for in the cash account of the credit side. In the description box, the
name of the person to whom the check is transferred is written.
(8) Bank Charges — If the bank charges the customer for its service; For example, Bank
Charges, Collection Charges or Bank Commission, then it is accounted for in the bank
account of the credit side and the name of such expenditure is written in the details account.
(9) Insolvency of Debtors — (i) When a debtor becomes insolvent, the actual cash
received from his property will be written in the cash column on the debit side of the cash
book. If the amount has been received through a check and the check has been deposited in
the bank, then the amount will be written under the Bank Column.

(ii) Bad Debts will be entered in Journal Proper-
Bad Debts A/c. Dr
To Debtors A/c
(Being the amount of bad debts recorded)
contra entry
In the journal in which both cash and bank are related to each other, entries are made on
both sides of the cash book. This type of entry is called double sided entry or opposite entry
and for this type of entry the letter C is written in red ink in the field containing the
account-page number (L.F.) which means ‘opposite’ or ‘opposite’. . The reverse side entry
does not require etching in the laser
Account on both sides (Contra Entry) in the following circumstances:
(i) On depositing rupees or checks in a bank:
(a) The amount will be written in the bank account by writing To Cash A/c on the debit side.
(b) By writing By Bank A/c on the credit side, the amount will be written in the cash column.
(ii) on the withdrawal of money from a bank when the money is drawn for office use:
(a) By writing To Bank A/c on the debit side, the amount will be written in the cash column.
(b) By writing By Cash A/c on the credit side, the amount will be written in the bank account.
(iii) When a contrary entry is made to reverse the effect of an earlier entry.
( Posting ) — In a two-column cash book, the cash and bank accounts perform the functions
of cash and bank account respectively. Hence, both these accounts are not opened in the
ledger. In fact they do not need to be entered in the ledger.
Balancing of Double Column Cash Book
The balance of the cash book is taken out in the same way as the ledger. Keep in mind that
when the merchant prepares the cash book, a separate cash account is not opened in the
ledger. Again it is to be noted that there will always be a debit balance in the cash book (i.e.
the total on the debit side being more than the total on the credit side). Yes, bank account
balance can be ‘Debit balance’ or ‘Credit balance’. In case of overdraft, the bank’s deposit
will be the balance. When a customer withdraws more than the amount deposited in the
bank, then that situation is called bank overdraft.
(ii) Cash book with cash and Discount

In this type of cash book, there are two cells each for the amount on the debit and credit
side. First meal for cash and second meal It is for discount
Remember — (a) When the merchant receives cash from anywhere or from any source, it is
accounted for in the cash account on the debit side. The discount given at the time of receipt
of cash is written in the discount column on the debit side.
(b) Similarly when a payment is made to someone or an expenditure is incurred on an item,
it is recorded on the credit side and the amount is written in the cash account. The discount
available when paying cash is shown in the ‘Discount’ column.
( Posting ) — Cash book works as a cash account. Hence, cash account is not opened in
the ledger. But since the cash book does not work as a ‘Discount Account’, it is necessary to
open a ‘Discount Account’ (Discount A/c).
Its accounting is similar to that of an ordinary cash book. The account of discount is also
debited in the same way i.e. the account which is debited on the debit side is credited
separately from the amount of cash and discount. Similarly, the account which is debited on
the credit side is debited separately by the amount of cash and discount.
Remember that the balance of the cash cell is taken out, but the balance of the discount or
discount cell is not taken out, rather they are added on both sides. The pairs of ‘Discount’
accounts are entered in the ledger to make double entry.
(iii) Cash Book with Bank and Discount
When the merchant deposits the daily cash in the bank and makes all the payments through
the bank (i.e. cheque), the cash in the cash book
Bank’s column is kept instead of food.
(a) When money is received, it is written in the bank account on the debit side of the cash
book and when paid, it is written in the credit side.
(b) Similarly, when discount/reduction/discount is given, the entry is made in the discount
column on the debit side and when the discount is received, the entry is made in the
discount column on the credit side.
Posting — In this also the same process of posting is adopted which is adopted in cash and
discounted cash books. The balance in the bank account is taken to trial balance. Bank
accounts will not be opened in the ledger. Debit side and credit side of the discount cell are
added separately, their balance is not taken out. In the ledger, the total of the debit side is
debited and the total of the credit side is credited to the discount account. Balance
calculation – By adding the debit side of the bank account, subtracting the amounts of the
credit side from it, the balance of the bank is taken out.
Discount Received earlier, disallowed later by the Creditors

• For dishonour of cheque — If the creditor dishonours the deduction due to dishonour of
check received earlier, then in the debit side of the cash book, the amount of the
dishonoured check is entered in the bank column and the name of the creditor is entered in
the description column.
• To eliminate the deduction -– To eliminate the earlier deduction, the following entry will be
made in Journal Proper so that Discount Received A/c can be closed –
Discount Received A/c
Discount Received A/c
To Creditors A/c
(Being the amount of discount received earlier, reversed on cheque being
Dishonoured)
Discount Received earlier, disallowed later by the Creditors
• For dishonour of cheque — If the creditor dishonours the deduction due to dishonour of
cheque received earlier, then in the debit side of the cash book, the amount of the
dishonoured cheque is entered in the bank column and the name of the creditor is entered in
the description column.
• To eliminate the deduction –- To eliminate the earlier deduction, the following entry will be
made in Journal Proper so that Discount Received A/c can be closed –
Cash Book (with Bank column)
₹
Bank
₹
₹
Bank
₹
2017
June
16
To
Kishor,s
A/c
15,000
FOR Example
On 18.6.2017, information was received from the bank that the cheque drawn on Kishor in
full and final payment of ` 16,000 to his account has been dishonoured due to insufficient
balance in the account. Record it in the cash book and journal proper.
In Journal Proper
Date Particular LF. Dr. Cr.
2017 Discount A/c 1,000

Jan 16 To Kishor’s A/c
(Being the Amount of Discount received
dishonour of cheque)
1,000
Discount allowed earlier but disallowed later on
If the check received from the customers/debtors is dishonoured, then the opposite entry is
also made for the deduction allowed earlier-
• Discount cheque For dishonoured cheque, the name of To Debtors / Customer is written in
the details column on the credit side of the cash book, the amount of the check is written in
the Bank Column.
• To disallow Discount Allowed i.e. for opposite entry the following entry is made in Journal
Proper-
Debtor’s A/c Dr
To Discount Allowed A/c
(Being the discount allowed reversed on cheque being dishonoured)
Discounting of Bills Receivable from the Bank
Bills receivable from debtors can be discounted before maturity. For this the bank charges
some fee which is called Discounting Charges. The bank deducts the amount of deduction
from the amount of the cheque, that is, deposits the net amount in the customer’s account.
For example, if a bill of ₹ 2,000 is discounted by a bank for ₹ 1,950, then in the debit side of
the firm’s cash book, the net amount will be shown in the Bank column and the amount
deducted by the bank will be shown in the Discount column. To Bills Receivable A/c will be
written in the description column.
Date Particular LF Disc.
ount
Cash
₹
Bank
₹
Date Particula
r
LF
.
Disc.
ount
Cas
h
₹
B
₹
To Bill
Receivable
A/c
50 1,950
Ledger posting of Two Column Cash Book
Writing off the debt part :
Rule 1- The transactions recorded in the debit part of the cash book are written in the credit
part of the ledger accounts.

Rule 2- In the description column of the ledger, By Cash A/c is written for cash transactions
and By Bank A/c is written for bank transactions.
Rule 3- Contra Entry i.e. transactions between cash and bank are not entered in the ledger.
Writing off the payment side i.e. credit side :
Rule 1- Transactions recorded in the credit part of the cash book are written in the debt part
of the ledger accounts.
Rule 2- To Cash A/c is written for cash transactions and To Bank A/c is written for bank
transactions.
Rule 3- Contra entry is not posted in the ledger
Example of Double column cash Book
Qs 1. Prepare a Double column cash book with cash and Bank Column and balance it
1-12-2016 Cash in hand 2,700
Cash at Bank 14,200
3-12-2016 Received a cheque from Mr. A. Kumar 3,100
4-12-2016 Paid Mr. A. Bose by cheque 860
5-12-2016 Sold goods for cash 1,800
10-12-2016 Paid texes by cheque 150
12-12-2016 Brought postage stamps for cash 50
18-12-2016 Mr. S. Saini paid his dues by cheque 3,500
19-12-2016 Deposited the cheque of Mr. A. Kumar into Bank 3,100
20-12-2016 withdrew from Bank 1,500
23-12-2016 Sold Goods by Cheque 4,000
27-12- 2016 Brought goods by cheque 5,000
31-12-2016 withdrew from Bank for personal use 2,000
Solution — Cash Book with cash and Bank

See the solution on article
Frequently Asked Questions
Qs 1. What is double column cash book class 11
Ans. Double column cash book class 11 (double column cash book) has two columns on
both debit and credit sides-one to record cash transactions and one to record bank
transactions.
Qs 2. What are the types of double column cash book class 11
Ans. There are 3 type of double column cash book class 11
Discount and Cash Column.
2. Cash and Bank Column.
3. Discount and Bank Column.
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