Recording contra entries: The deposited amount is written in the bank column on debit side and cash column on credit side. The withdrawn amount is written in the cash column on debit side and bank column on credit side. Important: The contra entry is made only when the cash is withdrawn for business use.
What is the difference between two column and three column cash book?
The only difference between two types of cash book is that a double column cash book has two money columns (i.e., cash and bank) whereas a triple column cash book has three money columns (i.e., cash, bank and discount). The discount column is only totaled.
What is double column?
1 : an advertisement covering the width of two columns (as of a newspaper) 2 : a newspaper article having a headline and sometimes its body set two columns wide.
What is petty column cash book?
What is the Petty Cash Book? The petty cash book is a recordation of petty cash expenditures, sorted by date. In most cases, the petty cash book is an actual ledger book, rather than a computer record. Thus, the book is part of a manual record-keeping system.
What is PR in cash book?
The post reference, or PR, column is one of the chief ways to ensure that your books remain accurate and complete. A post reference is a code that can guide anyone looking at a specific account ledger (such as accounts payable or accounts receivable) to the corresponding entry in the journal, or vice versa.
What are the two columns of the cash book?
The two Columns or double columns cash book is the subsidiary book for recording receipts and payment of cash and cheques. Being a ledger, it has two columns on either side (i.e debit and credit sides) cash are recorded under cash and cheques under the bank column.
How is a check recorded in a double column Cash book?
The amount of the check is recorded in the bank column on debit side and cash column on credit side. Both cash column and bank column of double column cash book are totaled and balanced at the end of an appropriate period. The process of balancing and posting a cash book has been explained in detail in single column cash book article.
Where does the contra go in a double column Cash book?
When a check is issued, the amount of the check is entered in the bank column on the credit side. The “contra” is a Latin word which means against or opposite. The contra entry is an entry which involves a cash account and a bank account and which is recorded on both debit and credit sides of the double column cash book at the same time.
What are the different types of cash books?
Kinds of Cash Books: Simple, Two Column, Three Column, Petty etc.
