Types of Cash Book, How Many Types of Cash Book, Contra Entry

Types of Cash Book: Cash book is the book in which all transactions worrying cash invoices and cash payments are recorded. On the debit side, all money invoices are recorded while on the credit side, all money payments are taped. In case of money deals, only a single aspect of deals is taped in ledger because the other aspect has to be recorded in Cash Book.

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Types of Money Book

( i) Single Column Money Book: It resembles a normal money account. In this all cash invoices are recorded on the left hand side (genuine account– debit what can be found in) and all cash payments are recorded on the right-hand man side (real account– credit what heads out).

( ii) 2 (Double) Column Money Book: It has two quantity columns on both sides; one is for cash and another is for discount. Cash column is implied for tape-recording money invoices and payments while discount rate column is suggested for recording discount received and enabled.

( iii) Three Columnar Money Book: This type of cash book consists of the following 3 quantity columns on each side:

( a) Discount rate column for discount received and permitted;-LRB- .

( b) Cash column for cash got and money paid; and

( c) Bank column for money deposited and cash withdrawn from the bank.

For tape-recording deals in the bank column of the money book the guideline of debit and credit relevant to personal accounts should be followed i.e. debit the receiver and credit the giver. Hence, when cash is deposited with bank, the bank would be the receiver and would be debited in the bank column of the money book. For money withdrawn from the bank the bank would be the giver and would be credited in the bank column of the money book.

Contra Entry:

If a transaction involves both money and bank accounts, it is entered on both sides of the cash book, one in the money column and other in the bank column, though on opposite sides. There are is called contra entries and word ‘C’ is indicated against that product in L.F. columns e.g. when cash is withdrawn from the bank, it is recorded on the debit side in cash column and on the credit side in the bank column.


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