Cash Book | Types of Cash Book | Cash Book formats

Cash Book

Every business organization irrespective of size of operation maintains various books of accounts to record the transaction, one of such book is called cash book. As Cash transactions form major portion it is necessary to maintain all such transactions including receipts of cash and payment of cash to different aspects. It is a subsidiary book where cash receipts and cash payments are recorded chronologically. The final balance of cash book i.e. cash balance & bank balance appear in Balance Sheet.

Types of Cash Book

There are four different types of Cash Books. They are

§  Single Column Cash Book

§  Two Column Cash Book

§  Three Column Cash Book

§  Petty Cash Book

Now let’s see in detail one by one.

§  Single Column Cash Book: 

                    A cash book which has contains only one column or single column of amount is called as single column cash book or simple cash book. The format of Single Column cash book is as shown below.

Date	Particular	LF	Amount	Date	Particular	LF	Amount

§  Two Column Cash Book: 

                         Cash column is meant for recording cash receipts and cash payments while discount column is meant foe recording discount received and discount allowed. The discount column on the debit side represents disallowed and discount column on the credit side represents discount received. The format for two column cash book is as shown below.

Receipts	Date	Particular	LF	Discount Allowed	Cash
Payments	Date	Particular	LF	Discount Received	Cash

§  Three Column Cash Book: 

                          The cash book which contains bank column, in addition to discount & cash column is called three column cash book. The format for three column cash book is as shown below.

Debit Side	Date	Particular	LF	Discount Allowed	Cash	Bank
Credit Side	Date	Particular	LF	Discount Received	Cash	Bank

§  Petty Cash Book: 

                    The term petty is derived from the French word which means small. It is an additional cash book which is maintained in order to record all the small payments such as stationary, travelling expense, printing, postage and telegram and so on. In short we can say that cash book maintained by petty cashier for recording small payments is called petty cash book. There are three different types of cash books they are simple petty cash book, Analytical cash Book and Impressed System of Petty Cash Book.

·        Simple Petty Cash Book:

                It contains only one amount column for all the class of petty payments. It does not contain separate amount column for each class of payments. The Performa for simple petty cash book is as shown below.

Amount Received	Cash Book Folio	Date	Particular	Voucher Number	LF	Amount Paid

·        Analytical Cash Book: 

                   The petty cash book which is ruled in analytical form i.e. petty cash book contains separate columns for each class of petty expenditure is called analytical cash book. The Performa for Analytical Petty Cash Book is as shown below.

Amount	Cash Book Folio	Date	Particular	Voucher Number	Total Payment
Printing & Stationary	Travelling Expenses	Postage Expenses	Sundry Expenses	LF	Ledger A/c Number

·        Impressed System of Petty Cash Book: 

                 The amount which the main cashier hand over to the petty cashier in order to meet the expenses over a given period of time is known as impressed flow at cash system.

§  Advantages of Petty cash Book:  

                 There are few advantages of maintaining the petty cash book. They are

·        Control over the mistakes.

·        Control over petty expenses.

·        Control over frauds.

·        Savings of main cashier time.