found easily. It helps in preventing any fraud or error in cash dealings. . Types of cash book The main cash book may be of various types and following are the three most common types.
(i) Simple or single column cash book (only cash column) (ii) Cash book with cash and discount column (double column cash book) (iii) Cash book with cash, discount and bank columns (three column cash book). Apart from the main cash book, petty cash book may also be prepared to enter the petty expenses, i.e., expenses involving small amount. . Single column cash book Single column cash book or simple cash book, like a ledger account has only one amount column, i.e., cash column on each side.
Only cash transactions are recorded in this book. All cash receipts and payments are recorded systematically in this book. The format of simple cash book is given as under: Simple Cash Book Cr. Receipts R.N.
L.F. Amount ` Payments V.N. L.F. Amount ` ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) The format of simple cash book shows that it has been divided into two parts.
The left hand side is ‘Debit’ which represents all cash receipts and the right hand side is ‘Credit’, showing all cash payments. Columns ( ) and ( ) – Date : Date of receiving cash is recorded in the debit side and date of paying cash is recorded in the credit side. Column ( ) Receipts : Receipts column shows name of persons or parties from whom cash has been received, income received, sale of asset like plant, cash sales and other receipts. Column ( ) Receipt Number (R.N.) : This column contains the serial numbers of the cash receipts.
Columns ( ) and ( ) – Ledger Folio (L.F.) : This column is provided both on the debit and credit side of the cash book. It is used for reference. The Ledger page number of every account in the cash book is recorded in this column. This column facilitates vouching and verification of transactions recorded.
Accountancy - Columns ( ) and