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UNIT 5: CASHBOOK
1. Cash Book is a subsidiary and principal book because cash transactions are directly
entered into it and after entering transactions into it, there is no ledger posting of it.
2. Kinds of Cash Book
(1) Simple Cash Book: Cash book which appears like an ordinary account with one
amount column on each side. The left hand side records receipts of cash and the right hand
side, payments.
Dr. Cash Book Cr.
Date Particulars L.F. Amount Date Particulars L.F. Amount
(2) Double Column Cash Book: If along with column for recording cash, another column
is added on each side to record discount or payments and receipts though Bank it is known
as Double Column Cash.
Dr. Cash Book Cr.
Date Particulars L.F. Discount Amount Date Particulars L.F. Discount Amount
(3) Three Column Cash Book: It contains cash bank and discount columns.
Dr. Cash Book Cr.
Date Particulars L.F. Discount Cash Bank Date Particulars L.F. Discount Cash Bank
Contra Entries : A single transaction which affects the cash and Bank column of a cash book
simultaneously is known as a contra entry and the letter `C' is written against these entries.
For e.g. Cash is deposited in Bank account, Cash is withdrawn from Bank account.
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