Double column cash book
A Cash Book is a ledger that is used to keep the record of income and expenditure. Each page is for one month. On the left side incomes during the month are shown while the right side is for expenditures during the same month. I have made the maintenance of Cash Book easy with the help of excel sheet. All the formulas have been put there.
The double column cash book also known as two column cash book has two money columns on both debit and credit sides — one to record cash transactions and one to record bank transactions. In other words, we can say that if we add a bank column to both sides of a single column cash book , it would become a double column cash book. The cash column is used to record all cash transactions and works as a cash account whereas bank column is used to record all receipts and payments made by checks and works as a bank account. Both the columns are totaled and balanced like a traditional T-account at the end of an appropriate period which is usually one month. Since a double column cash book provides cash as well as bank balance at the end of a period, some organizations prefer to maintain a double column cash book rather than maintaining two separate ledger accounts for recording cash and bank transactions.