Cash book

As Noun:-

              A book in which receipts and payments of money are recorded.

It is a subsidiary book, Cash Transaction is directly recorded in to Cash Book in on that basis ledger account are prepared. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.

Types of cash Book:-

               1)    Simple cash book  

                   2)   Two Column Cash Book

                       3)   Three Column cash Book

    1)Simple Cash Book:-

A Simple Cash Book records only cash receipts and cash payments. It has two sides, namely debit and credit. Cash receipts are recorded on the debit side i.e. left hand side and cash payments are recorded on the credit side i.e. right hand side. In this book there is only one amount column on its debit side and on the credit side. The format of a Simple Cash Book is as under:

   2)   Two Column Cash Book:-

When the number of bank transactions is large in an organization, it is necessary to have a separate book to record bank transactions. Instead of having a separate book to record bank transactions a column is added on each side of the Simple Cash Book. This type of cash book is known as Bank column Cash Book. All payments into bank are recorded on the debit side and all withdrawals/payments through the bank are recorded on the credit side of the cash book.

  3)   Three Column cash Book:-

In big business organizations, a large number of repetitive small payments such as, for conveyance, cartage, postage, telegrams, courier and other expenses are made. These organizations appoint an assistant to the Head Cashier. The appointed cashier is known as petty cashier. He makes payments of these expenses and maintains a separate cash book to record these transactions. Such a cash book is called three column or Petty Cash Book.