TWO COLUMN CASHBOOK
Hey Guys, Happy Thursday.
Sorry that this post is late, something came up but Praise be God that it is
here now, so let's get started.
Two Column Cashbook is a combination of the Cash Account and Bank
Account for the sake of convenience. There are separate columns for Date,
Particulars, Folio, Cash and Bank on both the Debit and Credit sides.
Cash Column: contains cash receipts and payments.
Bank Column: contains all payments made by cheque and
money received and paid into the Bank.
Contra Entries: are entries made in the cashbook when cash is
deposited into the bank account out of cash in hand or when cash is withdrawn
from the bank for office use.
Cash paid into the Bank: when there is surplus of cash in hand, the
firm can pay it into the bank. Cash balance will decrease and Bank balance will
increase.
Cash Column will be
credited, Bank Column will be debited. There must be a letter “C” put in the
folio column of both sides to signify that it’s a contra entry.
