Writing one-column banknotes, double-column cashbook and three-pillar cashbook

Single column cash book

It has only one. column on each page for amount In fact, it is written like cash account in the ledger (becoming real account, what comes in is charged; what goes out is credited). This type of cash book has the same decision as that of a general ledger account. There is no need to have a cash account in the ledger. The purpose is served effectively by the cash register itself. Posting from the debit (receipt) side of the cash book is done to the credit side of the accounts concerned and from the credit side of the cash book to the debit page of the accounts concerned.

balancing

The cash book is balanced in the same way as a general ledger account. Since no more cash can be paid what we have, the cash balance (if any) must always be a debit balance. Therefore, the receipt column is always larger than the payment column. The difference will be written on the credit side as “By balance c / d”. The totals are then entered in the two columns opposite each other, and then on the debit page, the balance is written as “At balance b / d”. It shows the cash balance in hand at the beginning of the next period. To check the accuracy of the records made, the cash register must be balanced frequently (preferably daily). The balance amount per Moneybook must match the actual cash in hand.

Double column cash book

As the phenomenon of offering and accepting cash discounts is closely related to the act of receiving and paying cash, the use of the cash book increases if there are also discounted columns in it. Cash book with additional columns for discount is known as double column cash book.

Triple Column Cash Book

These days, it is difficult to do business without having agreements with the bank. Usually, most of its funds are held by the company in a bank on a current account where frequent withdrawals and deposits are allowed. Bank transactions, ie payments in and out of the bank are more numbers than cash transactions. Therefore, it is appropriate as well as practical for the cash book to have an additional column on each page to record money deposited for bank dry payments out of the bank. The additional benefit of having this type of cash book is that it is not necessary to keep a bank account in the general ledger.

Before we explain the method of writing up the triple column, you must be familiar with the concept of ‘counter-entries’. Also, carefully note the processing of checks received and issued by the company.

counter Inputs

In the three-column checkbook there will be some cross or counter items, ie. transfer of money from cash to bank (deposited amount) and vice versa (amount deducted from bank for office use). In all such cases, both items appear in the cash register and no accounting is required. This is indicated by a contract sign (C) in the folio column indicating that the double entry aspect of this transaction is complete and it does not require posting to the ledger. The processing of controls in a triple column is explained below:

1. Checks received and deposited in the bank on the same day: When the checks received from the debtors are deposited in the bank on the day of receipt, the entry is recorded in the bank column on the debit side of the money book which receives from the debtor’s account credit.

2. Checks received but deposited with the bank at a later date: At the time of receipt of the check, two steps are required to register in the cash column on the debit side of the money book and the date on which it is deposited with the bank: –

(2.1) Enter the same in the cash column of the credit page in the money book “By Bank A / c” and

(2.2) Enter it in the bank column on the debit side of the money book ” For cash A / c. ‘It thus assumes the form of Contra entry on the day of deposit of check in the bank received earlier.

However, if no information is available about the check deposit date, it must be assumed that the check was deposited with the bank on the date of receipt.

3. Checks received and approved in favor of some creditors: – Upon receipt, checks are recorded in the cash column on the debit page and at the time of endorsement it is registered in the cash column on the credit side, by creditors Ale.

4. Holder checks can be cashed in the bank’s counter or they can be deposited in the bank. In the event that it is deposited, it must be recorded in the cash column on the debit page, in case it is deposited with the bank, the same must be registered in the bank column on the debit side of the money book.

The cash book is a journalized general ledger

Often a question is asked if the money book is a journal or ledger? It is a journal in the sense that all cash transactions are primarily recorded in the cash register with narrative, and that these are therefore recorded in the relevant accounts in the general ledger. The cash book is also a general ledger in the sense that it serves the purpose of cash account and bank account (in case of triple column box). A separate cash account is not opened in the general ledger, where there is a cash book. The cash book is thus a unique combination of journal and general ledger. It is popularly known as the journal ledger.

The similarities in the money book with journal

(1) Cash transactions are recorded in the cash register at the time of origin, ie. primary book.

(2) Transactions are recorded on a date basis.

(3) Transactions from a cash book posted to the relevant accounts (except cash accounts) in the general ledger.

(4) The cash book contains ledger foil as in the journal.

(5) Each entry is told.

The similarities between the ledger with the ledger

(1) Form of money book similar to the general ledger. Two pages on the left are the debit page (receipts) The right side is the credit page (payments).

(2) The words “To” and “By” are used as in the general ledger.

(3) No separate cash account and bank account are required in the general ledger. Thus, a cash book is the book with the final entry for cash and bank transactions.

(4) Cash and bank columns in the cash book are periodically balanced, as are general ledger accounts.