Double column cash book

By: Rashid Javed | Updated on: October 22nd, 2021

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.

Format

The format/specimen of a double column cash book is given below:

The above format of double column cash book has six columns on both debit and credit sides. The purpose of cash and bank columns has been explained at the start of this article and the purpose of date, description, voucher number (VN) and posting reference (PR) columns has been explained in single column cash book article.

Important points to remember while making entries in a double column cash book

Recording cash transactions:

  1. All cash receipts are recorded in cash column on the debit side and all cash payments are recorded in cash column on credit side of the double column cash book.
  2. If cash is received from a debtor or customer and is deposited into the bank account on the same date, the entry will be made in the bank column on the debit side, not in the cash column.

Recording bank transactions:

  1. When a check is received and the same is deposited into the bank account on the same date, the amount of the check is entered in the bank column on the debit side.
  2. When a check is received and the same is not deposited into the bank on the same date, the amount of the check is entered in the cash column, not in the bank column.
  3. When a check received from a receivable on a date subsequent to its receipt is deposited into the bank account, the entry is made in the bank column on the debit side and in the cash column on credit side. It is called a contra entry.
  4. When a check is issued, the amount of the check is entered in the bank column on the credit side.

Recording contra entries:

The “contra” is a Latin word which means against or opposite. The contra entry is an entry which involves a cash account and a bank account and which is recorded on both debit and credit sides of the double column cash book at the same time. This entry is not posted to any ledger account because both debit and credit aspects of transaction are handled within the cash book and the double entry work is completed. In posting reference column, the letter “C” is written to denote that the entry is a contra entry and will not be posted to any ledger account. A contra entry is made in the following circumstances:

(1). When cash is deposited into the bank account:

The entry for depositing cash into the bank account is:

Bank [Dr]
Cash [Cr]

The deposited amount is written in the bank column on debit side and cash column on credit side.

(2). When cash is withdrawn from bank account for business use:

The entry for withdrawal of cash from bank account for business purpose is:

Cash [Dr]
Bank [Cr]

The withdrawn amount is written in the cash column on debit side and bank column on credit side.

Important: The contra entry is made only when the cash is withdrawn for business use. If cash is withdrawn for personal use, it will be recorded only in the bank column on credit side of the cash book.

(3). When a check received from a receivable or customer on a date subsequent to its receipt is deposited into the bank account:

When a check is received and is not deposited into the bank account on the same date, it is recorded in the cash book just like a normal cash receipt. On a subsequent date, when the check is deposited into the bank account, the following entry is made:

Bank [Dr]
Cash [Cr]

The amount of the check is recorded in the bank column on debit side and cash column on credit side.

A D V E R T I S E M E N T

Balancing and posting a double column cash book

Both cash column and bank column of double column cash book are totaled and balanced at the end of an appropriate period. The process of balancing and posting a cash book has been explained in detail in single column cash book article. The same process is also applicable to a double column cash book.

The following example summarizes the whole explanation given above.

Example

The Edward Company uses a double column cash book to record its cash and bank related transactions. It engaged in the following transactions during the month of March 2018:

  • March 01: Cash balance $1,450 (Dr.), bank balance $1,500 (Dr.).
  • March 02: Paid Mark & Co. by check $120.
  • March 04: Received from John & Co. a check amounting to $400.
  • March 05: Deposited into bank the check received from John & Co. on March 04.
  • March 08: Purchased stationary for cash, $25.
  • March 12: Purchased merchandise for cash, $525.
  • March 13: Sold merchandise for cash, $1,800.
  • March 15: Cash deposited into bank, $850.
  • March 17: Withdrew from bank for personal expenses, $40.
  • March 19: Issued a check for merchandise purchased, $630.
  • March 20: Drew from bank for office use, $150.
  • March 22: Received a check from Peter & Co. and deposited the same into bank immediately, $880.
  • March 25: Paid a check to Daniel Inc. for $270.
  • March 26: Bought furniture for cash for office use, $175.
  • March 28: Paid office rent by check, $120.
  • March 29: Cash sales, $650.
  • March 30: Withdrew from bank for office use, $145.
  • March 31: Paid salary to employees by check, $300.

Required: Record the above transactions in a double column cash book and post entries therefrom into relevant ledger accounts.

Solution

Cash book:

General ledger:

Accounts receivable subsidiary ledger:

Accounts payable subsidiary ledger:

A D V E R T I S E M E N T
159 Comments on Double column cash book
  1. hannington

    it’s educative

    1. mihambo

      opened a bank account with K.C.B paying in sh 45000 where that transaction recorded between credit or debt?

      1. Muzii

        Bank A/c 45000
        Cash A/c 45000

        1. edna

          i thought you DR BANK
          Cr cash becesause it gave away the money

          1. umar

            yes. i think so

        2. manjitha

          how to enter this transaction in a double column cashbook ..?

        3. P.R. Marak

          KR-17 Office
          Q. How to record Cash Withdrawal from bank account for Office Expenses in cash book ?

          1. Yash

            Cash a/c dr and bank a/c credit
            To bank a/c C C By cash a/c

          2. Betty

            It will be a contra entry
            bank CR
            cash DR

      2. Hemanth L

        That’s in payment side cash coloum.

        1. Favour

          You can’t record any transaction that is not made in cash , no posting of credit transaction that why it’s called a cash book

      3. Bildad

        This is what is called contra entry in cashbook. In this case Dr bank column and Cr cash column in cashbook

        1. Pako Mosweu

          Recording cash sales paid directly into the bank is it a contra entry

          1. Jane noah

            Yes it is the contra

      4. Umar Suru

        Accounting I love Accounting

        1. tommy ogundeyi

          i agree its a very interesting course

      5. Yash Choudhary

        It will be contra entrie
        To cash
        By bank

      6. Oluyemi

        Very educative for the beginners

        1. Onyeisi Victor Nwafor

          What of goods brought on credit and paid after few days and the one sold on credit and some part of the money paid after few days again?

          1. Agoh Ogechukwu

            Credit sales and credit purchases has it separate book. When the debt is being paid, that is when you will record the transaction in the cash book reference to the name (s)

      7. hagai emmanuel

        at this there is two account k.c.b account and bank account at k,c,b account amount were trecorded in credit side and in bank were recorded in debit side

      8. Ritanjay sharma

        To bank a/c (debit)

      9. Maria

        Cash a/c Cr
        Bank a/c Dr

      10. Zawadi Msemwa

        Bank transaction should be debited and cash is credited

      11. Ajay Singh Bhandari

        Contra entry..

      12. Soumadip Mondal

        Bank ac dr.
        To cash ac.

    2. Karimu Abu Nepoh

      I really do understand the materials.
      I love accounting

    3. Abdul

      Please is cash rates to be debited or credited in cash book

  2. Silu

    It awesome
    Good Wotk

    1. Aksa

      How to get the balance of double colum cash book, how calculated

      1. meshak gaethany

        as normal by adding those on credit side and those on debit side and then take a great figure minus small figure bank to bank and cash to cash

        1. Edna Albans

          I like your answer correct

  3. kamaldeen sarafadeen

    Every where good

  4. kingsley

    Am now cleared

  5. EVE DEBRAH

    Thank you so so much. thanks to you i now i understand accounting basics. you have explained so well and provided step by step examples so easy to follow. thank you thank you!

  6. Chris

    I’m impressed with your explanation. I’ll use the information to put my office accounts in order.

  7. Asiugure zion

    Gud work

  8. Dennis

    Gud but I feel it could hav been much better I hav seen far better so I am not impressed try harder

  9. Kityege Jr II

    Nice explanations

    1. BhanuPratap

      Cash amount in bank 45000 (dr)
      Bank amount in cash 45000 (cr) because this is contra entry but clear that we are not opening ac for personal use we are opening account for business and cash paid by business

  10. Simran

    I wants to know about discount or commision type questn πŸ™„πŸ™„

    1. Ajay Singh Bhandari

      Discount is not being already minus..

  11. Adeniran Tosin

    What happen to the cash balance and bank balance. ( March 1st )

  12. Neethu

    I want to know how the” cheque paid to bank for collection “treated in double column cash book

  13. kim

    good work,but entries of March 01 and March 02 differ in question from those in solution.

  14. Sri hari prasanna

    It’s very much useful to accounts students . Thank you for your great job continue it with pleasure.

  15. tinapo sabar

    please sent to me sample of double entry cashbook,

  16. Dev

    In mar 4 the question is received form john & co by check amountiong 400 will come in debit side ; To John&co and the amount will be come in the bank side only BankπŸ˜₯😡

    1. Accounting For Management

      When you receive a check from someone and do not deposit it into bank account on the same date, the entry is made in cash column.

      Cash Dr. 400
      John & Co. Cr. 400

      When you deposit the same check into bank account on a subsequent date, you make a contra entry.

      Bank Dr. 400
      Cash Cr. 400

      1. Diensi bodrick

        thanks much.
        it’s lucrative

  17. Hassan Bala Ali

    Well,i now learn to correct my pass mistake you so learned friendly

  18. Sujay S

    i went to know if I transfer money my account in one bank to my account in another bank how should i record in cash in double column cash book

  19. Sujay S

    I want to know How to record in cash book If sent money to my son through money order

    thank you

    1. Orgyen Thinley

      I want to know how to post if bank overdraft is given on the first day of month in double cash column?

  20. Steven Selugo

    I loved your explanations about the double column cash book. Moreover I am in position to pass accounting as wished
    Thanks so much for the service provided

  21. Bertha

    Its very educative and well explained

  22. kehinde

    full meaning of VN and PR

    1. salahdin

      Voucher Number
      Posting Reference

  23. balu

    when I have received a cash rs 10000 and deposit to bank in various date. then how can I account il

  24. Saif ansari

    What is the entry of paid into bank in cash and bank column.?

    1. Rashid Javed

      It should be a contra entry. The amount should be recorded in bank column on debit side and cash column on credit side.

  25. haider

    is balance brought down is necessary entry

  26. alvin

    how did the date 4 concept go i thought we are to place the 400 in bank not cash column

    1. Accounting For Management

      If you don’t deposit the check into bank account on the same date on which you receive it, you should record it in cash column.

  27. Bright

    I am an accounting student and due to unpractice of it, I’ve forgotten everything but reading this article has helped me to recall things I learnt in the past. Thanks to the writer..

  28. Smriti

    It was too useful for me thanks for making it πŸ‘πŸ»πŸ‘πŸ»πŸ‘πŸ»πŸ‘πŸ»

  29. Nesar Lamea

    Thanks a lot Perfect explanation

    1. Kulwa

      Hey, plz help me to make the balance coz am get the contradiction In balances the c/d and b/d how we get them

  30. Bakari Mhando

    Thanks so much, it is a very good summary.

  31. HAJI HASSAN WAMBI

    i dont know how to balance my accounts pls help me

    1. salahdin

      email me with your books and i will balance them for you in excel. give me 10 transactionsm you can do the rest,

  32. samuel mungaru

    its educative

  33. Sakshi

    Deposited Rs.50000 of old currency notes into bank due to demonetisation.
    What will be the entry

  34. Murlidhar

    Where to record Half yearly/ quarterly bank interest entry in double column cash book

  35. joseph hill junior

    great work

  36. Guru

    It is very helpful
    And very good explanation

  37. Enoch Bruce

    It is very helpful
    And very good explanation

  38. Malumbo

    nicely done
    it was really helpful

    1. Benson okello

      Cash sales paid direct in to the bank,is still confusing dear Brothers and sisters..but anyway,,it’s well understood.. don’t worry.

      1. Oloya Benson Okello.

        Banked ugx 50,000= of the Cash held by the firm,,,is actually not well understood dear Brothers and sisters.. anyway more elaboration is still needed. Thanks

      2. Accounting For Management

        In this case the entry would be made in the bank column on the debit side of the cash book.

  39. josphat syengo musili

    how do you calculate the amount of capital on this statement! deposited all the cash to business bank account

  40. Buldy Thiagovic

    its very educative en helpful in case when you have forgotten something concerning cash book thnx so much for letting me remember it coz I had forgotten

  41. Tejaswi T M

    Itz bit helpfull to me tq… β˜ΊοΈπŸ‘πŸ‘πŸ‘

  42. Moola liwakala

    Its really nice and helpful to me.

  43. adeka

    so helpful to me

  44. Purity Kathure

    I would like to get further clarification about double entries. Not clearly understood to me.

  45. sp radhe syam

    i would like to get further clarification about double entries . Not clearly understood to me

  46. Priyanshu

    It’s CHEQUE not CHECK

  47. mustapha

    I have learnt a lot
    thank you πŸ™πŸ™

  48. Opeyemi

    Plz my account is not balancing. The contra aspect am confused, did it yet not balancing the cash column on both sides. Also qst 2. If part of the withdrawn money was used for business and the rest spent out e.g on transport does it carry the “c” or how do one go about it?

  49. ANM Jamal Uddin

    As a new learner it’s very helpful example for me. Thanks

  50. Withney

    Withdrew $1500 from bank to purchase office supplies for $1250. How to post in cash book?

    1. Ritanjay sharma

      To bank a/c
      By cash a/c

  51. Chisenga Kunda

    This is very inspiring, and self explanatory. I did book keeping years ago (26years).

  52. gaolatlhe reed oabile

    I am a student,doing transport management and logistics

  53. gaolatlhe reed oabile

    I want clarification on posting in ledger,T-account

  54. Denver

    What if an individual purchased goods on credit,is the transaction supposed to be debited or credited?

  55. ATIA FRANCIS

    My Doudts Are Cleared

  56. Freeman Owusu Boakye.

    I want to ask, in Accounting when it stated in a question ” cash taking” what does it mean.
    Is an assignment double column cash book.

  57. Samuel

    nice staff, may you continue solve different problems

  58. jojina jimmy

    Nice work your helping the society to know how double entries is made

  59. Sanket

    Thanks you very …….

  60. Twinkle

    Please what if you have banked cash what will be credited and debited

  61. Sam

    Where should goods bought on credit be recorded in double column cash book

    1. Accounting For Management

      Cash book is used to record only cash and bank related transactions. No credit transaction is recorded in cash book. The transaction you are talking about should be recorded in purchases journal.

  62. Pallavi

    Where is prepaid insurance for the year recorded?

  63. princess

    How can I prepare a three column cash book on every money received and spent

  64. Dawoko caleb

    nice work

  65. Kiki Blackrose

    Vijayan settled his account of rupees 600 after deducting discount rupees 30 how to post this entry in double column cash book?

  66. Hassan marafa

    When you get cash drawings or bank cashed what will you do

  67. christian

    Rig paid us cheque for 109000 where that transaction are recorded between debit and credit

  68. Akoko

    Great work.I love accounting

  69. Abdulqudus Ajidagba

    Thanks for making me understand what i don’t known

  70. Abdullah

    Excellent…. Please Received cheque from Abdul 4000…. Where should I post it?

    1. salahdin

      date you received the cheque and the anount 4000 in the ‘cash column’ on the Dr side.
      when you put the cheque 4000 in bank the transaction will be
      date , ‘C’ contra , amount 4000 in the bank column DR side
      date ‘C’ contra , amount 4000 in the Cash column Cr side

  71. Harriet

    are credit sales and credit purchases recorded

  72. Anonymous

    My question is what to do if the transaction is written as
    Drew from bank $650
    I mean its not stated that for what use like for bussiness or for personal use, then what should we do in such case…

  73. Shamirah

    very nice content but it needed some videos to explain the workings coz some are having different methods

  74. Jamiu

    I really enjoyed this website

  75. Delight

    Educative, but please I don’t understand how the total on debit and credit side the same figure.

  76. Christiana

    Returned goods priced $250
    Where will that be posted on the debit or credit side of the double column cashbook

  77. Stephen Quaye

    Very Nice

  78. P.R. Marak

    KR-17 Office
    Q. Suppose Withdrawn an amount of 50000$ from bank account for Staff Payment/Expenses. How to record this transaction in Double column Cash Book, Kindly Help. Thanks.

  79. Delight

    How can I post from cash book to ledger

  80. Edeh chinonso .o.

    Where can i record a money pay into my account in duble cash book.

  81. ritika

    please help to solve it

  82. Amosi William

    Thank you πŸ™

  83. Jit

    Thanks 😊
    For this site I’m properly learn the contra entry system πŸ˜€

  84. Jane noah

    Yes it is the contra

  85. Sumbal

    What will be the entry in double column cash book of withdrawn from the bank Rs16000 and paid wages Rs6000 and rent Rs10000

  86. Sumbal

    What will be the entry in double
    column cash book of 1:received from X cash and cheque,both deposited into bank.
    2:withdrawn from the bank Rs16000 and paid wages Rs6000 and rent Rs10000.

  87. PETER ORUKOOLUWA

    HOW IS STOCK POSTED IN A TWO COLUMN CASH BOOK

  88. Parivesh pandey

    W journal propervis necessary or not

  89. Jonijooh Junior

    Absolutely good analysis and good explanation.

  90. Emmanuel

    Sood goods on cash be on the debit side or credit side

  91. Judith

    How to enter creditors in a two column cash book ….

    On 5th bought goods from Emma worth 200000 on credit

    1. Accounting For Management

      Credit transactions are not entered in cash book. Sales journal is used to record such sales.

  92. Esther

    How will you record a good sold on credit from three people and goods bought on credit

  93. Semilore

    Sales by credit is recorded on what side please need answers now

    1. Accounting For Management

      Credit sales are not recorded in cash book. They are entered in sales journal. Cash book is maintained to account for cash transactions.

  94. raza

    sir if double cash book column credit side balance exceed than debit side balance

    1. CPAK John Odhiambo

      You can balance the accounts by introducing the balance credited. This is the difference between the debit account and the credit account and recognized / recorder as b/c then the difference amount

  95. Promise

    I enjoyed the app but no matter what I don’t like accounting. Nice app

  96. CPAK John Odhiambo

    My friends always in a cashbook cash will always be debited and credit respective account receivable. Visa vie when handling bank accounts, we credit the respective customer account and debit bank account

  97. Sonia

    What if the question has discount and debit to pay off
    How will the digram be please

  98. Nooreen Akhter

    Hello. how we can maintain bank column for transactions with multiple banks

  99. Eddah

    Why the three column cashbook is both a ledger as well as a book of original entry

  100. Margret

    Credit oooo, so now gave me qustion to solved

Leave a comment