Single Column Cash Book
It has just one. column on either side for quantity In truth, it’s written similar to money account within the ledger (being actual account what is available in is debited; what goes out is credited). This type of ‘money ebook has the identical ruling as that of a ledger account There is not any want of getting a money account within the ledger. The function is ably served by money ebook itself. Posting from debit (receipt) facet of the money ebook is finished to the credit score facet of involved accounts and from the credit score facet of money ebook to the debit facet of involved accounts.
The money ebook is balanced in the identical method as a ledger account. As extra cash can’t be paid then what now we have, due to this fact the money stability (if any) should all the time be a debit stability. Therefore, the receipts column will all the time be larger than the funds column. The distinction might be written on the credit score facet as “By stability c/d”. The totals are then entered within the two columns reverse each other and then on the debit facet the stability is written as “To stability b/d”. It exhibits the money stability in hand to start with of the subsequent interval. To confirm the accuracy of the entries made, the money ebook needs to be balanced steadily (ideally day by day). The stability as per money ebook should tally with the precise money in hand.
Double Column Cash Book
As the phenomenon of providing and accepting money low cost is intimately related to the act of receipt and fee of money, due to this fact, the utility of money ebook will increase if the columns of low cost are additionally supplied in it. Cash ebook having extra columns for low cost is named double column money ebook.
Triple Column Cash Book
These days it’s tough to carryon any enterprise with out having dealings with the financial institution. Normally bulk of its funds is stored by the enterprise at a financial institution in a present account the place frequent withdrawals and deposits are permitted. Bank transactions, i.e.. funds into and out of financial institution are extra quite a few than money transactions. Therefore, it’s applicable in addition to handy that money ebook ought to have one extra column on either side to document moneys deposited at financial institution arid funds out of the hank. The extra benefit to having this sort of money ebook is that checking account is just not required to be maintained within the ledger.
Before we clarify the strategy of writing up the triple column money ebook try to be acquainted with the idea of ‘contra entries’. Also observe fastidiously the remedy of cheques obtained and issued by the enterprise.
In the three column money ebook there might be some cross or contra entries i.e.. switch of cash from money to financial institution (quantity deposited) and vice versa (quantity withdrawn from financial institution for workplace use). In all such circumstances each entries happen within the money ebook and no ledger entry is required. This is indicated by a contra signal (C) within the folio column indicating thereby that the double entry side of this transaction is full and it requires no posting to the ledger. Treatment of cheques in a triple-column money ebook is defined beneath:
1. Cheques obtained and deposited within the financial institution on the identical day: When the cheques obtained from the debtors are deposited within the financial institution on the day of receipt itself the entry is recorded within the financial institution column on the debit facet of the money ebook there from debtor’s account receives credit score.
2. Cheques obtained however deposited within the financial institution on a later date: At the time when cheque is obtained it’s recorded within the money column on the debit facet of the money ebook and the date on which it’s deposited within the financial institution, Two steps are required:-
(2.1) Enter the identical within the money column on the credit score facet of the money ebook “By Bank A/c” and
(2.2) Enter it within the financial institution column on the debit facet of the money ebook’ ‘To Cash A/c”. Thus it assumes the type of Contra entry on the day of depositing the cheque into financial institution obtained earlier.
However, if there isn’t any data as to the date of deposit of the cheque, it ought to beassumed that the cheque was deposited within the financial institution on the date of receipt.
three. Cheques obtained and endorsed in favor of some creditor :- On receipt, cheque is recorded within the money column on the debit facet and on the time of endorsement the identical is recorded in money column on credit score facet, By Creditors Ale.
four. Bearer cheques could also be en cashed on the counter of the financial institution or it might be deposited within the financial institution. In case it’s en-cashed it needs to be recorded within the money column on the debit facet, in case it’s deposited within the financial institution the identical needs to be recorded within the financial institution column on the debit facet of the money ebook.
Cash ebook is a Journalized ledger
Often a query is requested whether or not money ebook is a journal or ledger? It is journal within the sense that each one money transactions are primarily recorded within the money ebook with narration and due to this fact, these are posted to the related accounts within the ledger. Cash ebook can also be ledger within the sense that it serves the aim of money account and checking account (in case of triple column money ebook). No separate money account is opened within the ledger the place money ebook is in existence. Thus money ebook is a novel mixture of journal and ledger. It is popularly often known as journalized ledger.
Similarities of Cash ebook with journal
(1) Cash transactions are recorded within the money ebook on the time of origin i.e. main ebook.
(2) Transactions are recorded date-wise.
(three) Transactions from money ebook posted to the related accounts (besides money account) within the ledger.
(four) Cash ebook accommodates ledger folio as within the journal.
(5) Narration is given for every entry.
Similarities of Cash ebook with ledger
(1) Form of money ebook resembles With ledger. Two sides left hand facet is the debit facet (receipts) Right hand facet is the credit score facet (funds).
(2) Words “To” and “By” are used as within the ledger.
(three) No separate money account and checking account are required within the ledger. Thus money ebook is the ebook of ultimate entry for money and financial institution transactions.
(four) Cash and financial institution columns of the money ebook are periodically, balanced similar to ledger accounts.