It is also called two column cash book.
Under this, two amount columns are prepared in one side.
Receipt amount is recorded in debit side.
Payment amount is recorded in credit side.
From this account cash balance or bank balance is found out.
Under double column cash book, following cash books are prepared:
Cash and discount
Bank and discount
Cash and bank
Double Column Cash Book (Cash and Discount)
Date |
Receipt |
LF |
Cash |
Dis |
Date |
Payment |
LF |
Cash |
Dis |
|
To Balance b/d |
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By Balance c/d |
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|
xxxx |
xxx |
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xxxx |
xxx |
Or
Double Column Cash Book (Bank and Discount)
Date |
Receipt |
LF |
Bank |
Dis |
Date |
Payment |
LF |
Bank |
Dis |
|
To Balance b/d |
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By Balance c/d |
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xxxx |
xxx |
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xxxx |
xxx |
Keep in mind (KIM)
Bank balance may be in debit balance (bank balance) or credit balance (bank overdraft) |
Opening balance = beginning balance = balance b/d |
Closing balance = ending balance = balance c/d |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2A
The following extracted balances are given by KK Traders:
Jan 1: Opening cash balance Rs 55,000.
Jan 2: Goods purchased from Binesh worth Rs 45,000 and paid partially Rs 30,000.
Jan 5: Goods sold to Rita for Rs 25,000 and cash received Rs 20,000 in partial.
Jan 10: Electricity bill paid Rs 1,000.
Jan 15: Equipment purchased for Rs 5,000.
Jan 18: Cash paid to Binesh Rs 14,700 in full settlement.
Jan 22: Cash received from Rita and discount allowed Rs 200.
Jan 28: Rent paid in Rs 10,000.
Jan 29: Cash withdrawn for personal use Rs 3,000.
Required: Double column cash book for the month of Jan
[Answer: Cash balance = 16,100]
SOLUTION:
Double Column Cash Book (Cash and Discount)
Date |
Receipt |
LF |
Cash |
Dis |
Date |
Payment |
LF |
Cash |
Dis |
Jan 1 |
To Balance b/d |
|
55,000 |
− |
Jan 2 |
By Purchase A/c |
|
30,000 |
− |
Jan 5 |
To Sales A/c |
|
20,000 |
− |
Jan 10 |
By Electricity exp. |
|
1,000 |
− |
Jan 22 |
To Rita’s A/c |
|
4,800 |
200 |
Jan 15 |
By Equipment A/c |
|
5,000 |
− |
|
|
|
|
|
Jan 18 |
By Binesh’s A/c |
|
14,700 |
300 |
|
|
|
|
|
Jan 28 |
By Rent A/c |
|
10,000 |
|
|
|
|
|
|
Jan 29 |
By Drawings A/c |
|
3,000 |
|
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Jan 31 |
By Balance c/d |
|
16,100 |
|
|
|
|
79,800 |
200 |
|
|
|
79,800 |
300 |
Keep in Mind (KIM)
Rs 200 is discount allowed coz debit side. |
Rs 300 is discount received coz credit side. |
Rs 16,100 is cash balance, it difference of Dr and Cr viz 79,800 – 63,700 = Rs 16,100. |
#######
Click on link for YouTube videos topic wise : |
|
Accounting Equation |
|
Basic Journal Entries in Nepali |
|
Basic Journal Entries |
|
Journal Entry and Ledger |
|
Ledger Account |
|
Subsidiary Book |
|
Cash Book |
|
Trial Balance and Adjusted Trial Balance |
|
Bank Reconciliation Statement (BRS) |
|
Depreciation |
|
Click on link for YouTube videos chapter wise: |
|
Financial Accounting and Analysis (All videos) |
|
Accounting Process |
|
Accounting for Long Lived Assets |
|
Analysis of Financial Statement |
#######
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2B
The following extracted balances are given by KL Traders:
Jan 1: Opening balance of bank Rs 70,000.
Jan 2: Goods purchased from Binisha worth Rs 60,000 and cheque issued Rs 40,000 partial.
Jan 5: Goods sold to Ritika for Rs 25,000.
Jan 10: Cash deposited into bank for Rs 10,000.
Jan 15: Cheque issued to Binisha for Rs 19,500 in full settlement.
Jan 20: Cheque received from Ritika after Rs 200 discount.
Jan 25: Commission paid by cheque Rs 5,000.
Jan 30: Cash withdrawn from bank for office use Rs 30,300.
Required: Double column cash book for the month of Jan
[Answer: Bank balance = 10,000]
SOLUTION:
Double Column Cash Book (Cash and Discount)
Date |
Receipt |
LF |
Cash |
Dis |
Date |
Payment |
LF |
Cash |
Dis |
Jan 1 |
To Balance b/d |
|
70,000 |
− |
Jan 2 |
By Purchase A/c |
|
40,000 |
− |
Jan 10 |
To Cash A/c |
|
10,000 |
− |
Jan 15 |
By Binisha’s A/c |
|
19,500 |
500 |
Jan 20 |
To Ritika’s A/c |
|
24,800 |
200 |
Jan 2 |
By Commission A/c |
|
5,000 |
|
|
|
|
|
|
Jan 2 |
By Cash A/c |
|
30,300 |
|
|
|
|
|
|
Jan 2 |
By Balance c/d |
|
10,000 |
|
|
|
|
104,800 |
200 |
|
|
|
104,800 |
500 |
********
PROBLEMS AND ANSWERS |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2A
The following extracted balances are given by KK Traders:
March 1: Debit cash balance Rs 55,000.
March 2: Goods purchased from Geeta for Rs 40,000 and partial cash paid Rs 20,000.
March 5: Cash received from Manisha Rs 19,500 and discount allowed Rs 500.
March 10: Wages paid Rs 1,000.
March 15: Furniture purchased for Rs 5,000.
March 18: Cash paid to Geeta Rs 19,500 in full settlement.
March 28: Advertisement expenses paid in cash Rs 4,000.
March 29: Cash withdrawn for personal use Rs 5,000.
Required: Double column cash book for the month of March
[Answer: Cash balance = 20,000]
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Currency of your country
PROBLEM: 2B
The following extracted balances are given by KL Traders:
February 1: Debit bank balance Rs 95,000.
February 5: Goods sold to Ritika for Rs 25,000 on credit.
February 10: Commission received by cheque Rs 5,000.
February 15: Cheque issued to Binisha for Rs 54,000 in full settlement of Rs 55,000.
February 20: Cheque received from Ritika after Rs 500 discount.
February 25: Computer printer purchase by cheque Rs 10,000.
February 27: Salary paid by cheque Rs 27,000.
February 28: Cash withdrawn from bank for office use Rs 20,000.
Required: Double column cash book for the month of February
[Answer: Bank balance = 13,500
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