Maintaining money book, bookkeeping and balance sheet

In the case of a new business, the amount will be written in the cash column if the cash is introduced and in the bank column if it is deposited directly in the bank with the words “To capital account” on the debit side of the cash book. In the case of a continuing business, the opening balances are written as “On balance b / d” Receipt page of the cash register. (Dr. Side)

It is used to record all receipts both in cash and by check, and also to record the allowed discount to our debtors while we receive the payment. Cash receipts are entered in the cash column, while amounts received by check are entered in the bank column; (It is always recommended to follow the practice of checking all checks received as “Payee A / c only” and sent to the bank for collection. This provides protection against possible undercutting) and allowed discount in the discount column.

Printing from the debit side of the money book

This applies to credit for the respective accounts – in case personal account credit must be given for cash or received check plus allowable discount. At periodic intervals, cash and bank columns are balanced and the balance is carried down to the next period, whereas the discount column must be merged and posted on the debit page in the “Discount allowed” account to be maintained in the general ledger.

The payment page of the cash register (Cr. Page) is used to record all payments both in cash and through checks, also to record the received or used discount that we have received from our creditors as we pay to them. Cash payments are recognized in the cash column, payments by check are entered in the bank column and received discount in the discount column.

Accounting from the credit side of the money book

It is for debiting the respective account – in the case of personal accounts, which must be debited for the sum of the payments made and the discount received. At periodic intervals, the discount column is summed and posted as credit to the “Received discount account” in the general ledger.


The cash columns are balanced exactly as explained in the case of a single column cash register. Discount columns are aggregated but not balanced. Bank columns are also balanced like cash columns.

As the banks allow overdraft, it is therefore possible for the company to withdraw more than the deposited amount. In such a case, the sum of the bank column on the credit side will be greater than that on the debit side. The difference is written on the debit page as “To balance c / d”.

Bank (Moneybook) A / c

Every time cash is handled by the employees, there is always a danger that the employees can cash in. To minimize this risk, many of the business units follow this policy:

(1) All cash received is deposited intact in the bank, ie. no part of the cash received is used to meet daily payments;

(2) All checks received are also sent to the bank for collection;

(3) All payments are made on the issue of checks.

However, small payments such as transport, postage, local transport, etc., like. by nature, cannot, payable by check must be processed through another cash book called “Petty Cash Book”. We will discuss it later in this particular chapter.

If the above scheme is adopted, there is hardly any chance that the employee receiving the cash will be able to make inappropriate cash either temporarily or permanently. The only care you should take is to see if the daily total receipt matches the amount deposited in the bank (either on the same day or the next business day) or not.

This can be verified from the offset to the ‘deposit slip’. If you decide to use this type of .cash book for your business, it should have only two columns on each page, Bank & Discount. There is no need to have a cash column. It can also be called “Cash cash without cash column” or “Bank cash book”.

How to write? All receipts. Whether cash or check should be entered on the debit page of the book in the bank column. All payments to be entered on the credit side of the book in the bank column. The treatment of allowable discount and received discount is the same as previously mentioned.

Posting is also similar to that described in Triple Column Moneybook.