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Home Cash Book Two/Double Column Cash Book

Two/Double Column Cash Book:

Definition and Explanation:

Cash A/c and Bank A/c are two busiest accounts in ledger and they are removed from the ledger to reduce its volume and size. Cash A/c is removed from the ledger and instead of it the Single Column Cash Book is kept to record cash transactions. In the same way no Bank A/c is opened in ledger for recording bank transactions, rather an additional amount column is provided on each side of 'Single Column Cash Book' for recording bank transactions. One more column for amount is provided on the debit side and one on credit side of Single Column Cash Book. These two amount columns on debit side and credit side will serve as Bank A/c and so it will not be necessary to open a Bank A/c in the ledger. The Cash Book having two Amount Columns on both sides is called 'Double Column Cash Book'.


The following advantages are derived from Double Column Cash Book:

  1. All entries made in "Bank" Column of Double Column Cash Book form a part of double entry system and hence a separate Bank A/C need not be opened in ledger. It saves time, labour and cost.
  2. Both cash transactions and bank transactions are recorded in the same book. So both cash balance and bank balance are easily available from the same book.

Thus it is said that the Double Column Cash Book has two accounts in it, the Cash A/C and the Bank A/C.

Contra Entry

In any account we can only have one half of a double entry. An account cannot be debited and credited at the same time. For example, when we sell goods for cash, cash received will be recorded on the debit side of Cash Book and the goods sold will be posted on the credit side of Sales Account. But in Double Column Cash Book, we have two accounts, Cash A/c and the Bank A/c, so it is possible to have both a debit entry and a credit entry at the same time. For example, cash of $5,000 is deposited into the bank. In this transaction both Bank A/c and Cash A/c are involved and they will be recorded on both sides of Double Column Cash Book i.e. on the debit side in bank column and on the credit side in cash column.

Thus a transaction in which Cash A/c and Bank A/c are involved, is recorded on both the sides of Double Column Cash Book, it is called "contra entry", from the Latin prefix contra meaning 'opposite to or against'.

In recording such a transaction the letter "C", is written in 'L.F' column because both aspects of the transactions are recorded and there is no need to post them into the ledger.

In this connection, the difference between contra entry and other entries in Cash Book may be noted. ''The Double entry work of contra entry is completed in Cash Book. They need not be posted to ledger". But the double entry work of other entries in Cash Book is not completed, one aspect (i.e. cash aspect) of the transaction is, however, completed in Cash Book, but the other aspect is not completed, which is to be posted to the concerned account in ledger.

Contra entry will be passed in the following cases:

When cash is deposited into the Bank:

Bank column - debit -- Cash column-credit.

When cash is drawn from the bank for business purposes:

Cash Column - debit -- Bank column - credit.

When a cheque received from a debtor on a date subsequent to its receipt is deposited into the bank:

Bank column - debit -- Cash column - credit.

More Hints:

While writing Double Column Cash Book, keep in mind that there are two separate boxes - one for the cash and other for the bank:


Cash Box Cr
Bank Box


When cash or Cheques (Cheques received but not deposited on the same date ) enters into cash box, Cash Column is debited and when cash or cheque goes out of the cash box. Cash Column is credited. On the other hand, when Cash or cheque enters into bank box, Bank Column is debited and when cash goes out of bank box, bank column is credited.

Example 1:

Enter the following transactions in a double column cash book/two column cash book.

2005   $
March 1 Cash in hand 80,000
March 1 Bank Balance 120,000
March 3 Received a cheque from Osman 24,000
March 4 Deposited Osman's cheque with bank --
March 8 Withdrawn from bank for business use 20,000
March 10 Goods sold for cash 30,000
March 15 Goods bought for cash 80,000
March 18 Goods sold for cash 60,000
March 20 Paid Rahim by cheque 26,000
March 30 Deposited into bank 16,000
March 31 Paid salary in cash 10,000
March 31 Paid rent by cheque 6,000


Double Column Cash Book

Date Particulars V/N L/F Cash $ Bank $ Date Particulars V/N L/F Cash $ Bank $
2005           2005          
Mar. 1 Balance b/d     80,000 120,000 Mar. 4 Bank A/c
(Being cheque deposited)
  C 24,000  
3 Osman A/c
(Being cheque received)
    24,000   8 Cash A/c
(Being cash withdrawn from bank)
  C   20,000
4 Cash A/c
(Cheque deposited with bank)
  C   24,000 15 Purchase A/c
(Being goods bought)
8 Bank A/c
(Being cash drawn from bank)
  C 20,000   18 Cash A/c   C 16,000  
 10 Sales A/c
(Being goods sold 'for cash)
     30,000   20 Rahim A/c
(Cheque issued)
 18 Sales A/c
(Being goods sold for cash)
     60,000   31 Salary A/c
(Being salary paid)
30 Cash A/c
(Being cash deposited)
  C   16,000 31 Rent A/c
(Being rent paid by cheque)
             31 Balances c/d     84,000 108,000


        214,000 160,000         214,000 160,000


April. 1 Balance b/d     84,000 108,000            

Example 2:

Enter the following transactions of M. Rauf in a Double Column Cash Book and post them to concerned accounts in ledger:

2005   $
Jan. 1 Cash in hand 100,000
Jan. 1 Cash at Bank 60,000
Jan. 3 Cash Sales 40,000
Jan. 4 Paid M. Arshad by a cheque 14,000
Jan. 6 Received a cheque from Babar 8,000
Jan. 8 Cash deposited into bank 19,000
Jan. 8 Babar's cheque deposited into bank  --
Jan. 10 Drew from bank for office use 15,000
Jan. 11 Drew from bank for personal use of owner 24,000
Jan. 12 Cash purchases 57,000
Jan. 15 Received a cheque from S. Rashid 10,000
Jan. 16 Rashid's cheque endorsed to Shakeel  --
Jan. 17 Paid Arshad Khan by a cheque 36,000
Jan. 18 Rashid's cheque returned dishonored  --
Jan. 19 Our cheque to Arshad Khan was dishonored  --
Jan. 21 Received interest from bank 1,400
Jan. 24 Cash sales 33,00
Jan. 27 Incidental charges debited by bank 700
Jan. 31 Salary paid by cheque 14,000


Cash Book (double column)

Date Particular V/N L/F Cash $ Bank $ Date Particular V/N L/F  Cash $ Bank $
2005           2005          
Jun. 1 Balance b/d     100,000 60,000 Jan. 4 M. Arshad A/c   7   14,000
3 Sales A/c   5 40,000   8 Bank A/c   C 19,000  
6 1Babar A/c   9 8,000   8 Bank A/c   C 8,000  
8 Cash A/c   C   19,000 10 Cash A/c   C   15,000
8 2Cash A/c   C   8,000 11 Drawing A/c   11   24,000
10 Bank A/c   C 15,000   12 Purchase A/c   13 57,000  
15 3S.Rashid's A/c   15 10,000   16 Shakeel A/c   16 10,000  
19 4Arshad Khan A/c   17   36,000 17 Arshad Khan A/c   17   36,000
21 5Interest A/c   19   1,400 27 Bank charges A/c   20   700
24 Sales A/c   5 33,000   31 Salary A/c   21   14,000
            31 Balance C/d     112,000 20,7000


        206,000 124,400         206,000 124,400


Feb. 1 Balanced b/d     112,000 20,700            
  1. On 6.1.2005, cheque received from Babar is treated as cash because it is not deposited into the bank on the same date.
  2. A contra entry is passed when Babar's cheque (which was treated as cash) is deposited into the bank on 8.1.2005.
  3. On 15.1.2005, cheque received from S. Rashid is treated as cash, so recorded in Cash Column.
  4. Cheque issued to Arshad Khan on 17.1.2005 is dishonored, so the bank is debited again and Arshad Khan became a creditor again.
  5. On 21.1.2005, the bank allowed us interest which is revenue for the business and our bank balance is increased by $1,400.


The transaction on 18.1.2005 is not entered in the Cash Book because it does not involve cash A/c or Bank A/c. Simply S. Rashid will become debtor and Shakeel will become creditor again and entry will be passed in proper journal as:


S. Rashid A/C ............. Dr.  10,000
     Shakeel A/C.............................. Cr.  10,000

Posting from Cash Book to concerned accounts In Ledger:

Cash A/c and Bank A/c not have been opened in Ledger For posting in Ledger, it will be very helpful to see the two columns on the debit side and credit side of the Cash Book first i.e. Particulars Column and L.F Column. On the debit side, in Particulars Column, the names of concerned accounts, (accounts which are credited when Cash A/C or Bank A/C are debited) are given and in L.F Column, the page numbers on which these accounts are opened in Ledger are given. The concerned accounts on the debit side in Particulars Column are Sales A/c, Babar A/c, S. Rashid A/c, Arshad Khan A/c and Interest A/c and on the credit side M. Arshad A/c, Drawing A/c, Purchase A/c, Shakeel A/c, Arshad Khan A/c, Bank Charges A/c and Salary A/c.

Rule For Posting:

  • On credit side: of the concerned accounts in Particulars Column on the debit side of the Cash Book.
  • On debit side: of the concerned accounts in Particulars Column on the credit side of the Cash Book.

Sales A/C (Folio 5)




Cash A/C
Cash A/C

Baber A/C (Folio 9)




Cash A/C 8,000

S. Rashid A/C (Folio 15)




Cash A/C 10,000

Interest A/C (Folio 19)




Bank A/C

Arshad Khan A/C (Folio 17)


Bank A/C 36,000


Bank A/C 36,000

M. Arshad Khan A/C (Folio 7)





Drawings A/C (Folio 11)





Purchase A/C (Folio 10)


Cash A/C 57,000



Shakeel A/C (Folio 16)


Cash A/C 10,000



Bank Charges A/C (Folio 20)


Bank A/C 700



Sales A/C (Folio 21)


Bank A/C 14,000



Relevant Articles:

Definition and Explanation of Cash Book
Simple or Single Column Cash Book
Two/Double Column Cash Book
Treble/Three Column Cash Book
Petty Cash Book





Financial Accounting Topics

  Introduction to Accounting
  Transactions and Accounting Equation
  Analysis of Business Transactions
  Journal, Ledger and Trial Balance
  Accounting for Bills of Exchange
  Special Journals
  Cash Book
Bank Reconciliation Statement
  Final Accounts
  Work Sheet
  Capital and Revenue Items
  Valuation of Inventories
  Accounts of Non-profit Making Organizations
  Statement of Cash Flows
  Accounting Ratios Analysis
  Depreciation, Provisions and Reserves
  Accounting Dictionary
  Financial Calculators
Managerial Accounting Topics

  Financial Statements
  Cost Volume Profit Relationship
  Variable Costing System
  Materials and Inventory Cost Control
  Activity Based Costing System
  Standard Costing and Variance Analysis
  Balanced Scorecard
  Capital Investment Analysis/Capital Budgeting



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