Two-Column Cash Book Format
The Two-Column Cash Book is a book of prime entry that records all cash receipts and payments together with bank transactions in one book. It has two amount columns (Cash and Bank) on each side and acts at the same time as a book of prime entry and a ledger (the Cash account and the Bank account). It is used when a business keeps both cash in hand and a bank account, and it also records contra entries between cash and bank.
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Blank format
| Date | Particulars | Fol | Cash | Bank | Date | Particulars | Fol | Cash | Bank |
|---|---|---|---|---|---|---|---|---|---|
| xx | Balance b/d | xx | XX | XX | xx | xx | xx | XX | XX |
| xx | xx | C | XX | XX | xx | xx | C | XX | XX |
| xx | xx | xx | XX | XX | xx | Balance c/d | xx | XX | XX |
| xx | xx | xx | XX | XX | xx | xx | xx | XX | XX |
| xx | Balance b/d | xx | XX | XX |
Left side is Debit (Dr), right side is Credit (Cr).
Divide the page into two mirrored sides: Debit (receipts) on the left and Credit (payments) on the right. Each side has Date, Particulars, Fol, Cash and Bank columns. Mark contra entries with a 'C' in the Fol column, and total both sides on the same line with a double ruling.
Parts of the format
- Two sides: Debit and Credit
- The debit side (left) records all cash and bank receipts; the credit side (right) records all cash and bank payments.
- Cash and Bank columns
- Each side has two amount columns (hence 'two-column') so that cash-in-hand transactions and bank transactions are recorded separately.
- Contra entry and the 'C' mark
- When money is moved between cash and bank, both entries fall in the same book; they are marked 'C' in the Fol column to show a contra entry.
- Particulars (the opposite account)
- Particulars states the name of the opposite account in the double entry, not the name of the cash book account itself.
- Balance b/d and balance c/d
- The opening balance (b/d) sits on the debit side; the closing balance (c/d) is inserted on the credit side to balance, then brought down as balance b/d for the next period.
Filled example
Firdaus Sports Equipment began July 2024 with cash in hand of RM500 and a bank balance of RM8,000. During July: cash sales RM1,200 (3 Jul); received a cheque of RM2,000 from debtor Siti (5 Jul); paid rent by cheque RM1,500 (8 Jul); deposited cash RM800 into the bank (10 Jul); paid wages RM600 in cash (12 Jul); and withdrew RM300 from the bank for office use (15 Jul).
| Date | Particulars | Fol | Cash | Bank | Date | Particulars | Fol | Cash | Bank |
|---|---|---|---|---|---|---|---|---|---|
| 1 July | Balance b/d | 500 | 8,000 | 8 July | Rent | 1,500 | |||
| 3 July | Sales | 1,200 | 10 July | Bank | C | 800 | |||
| 5 July | Siti | 2,000 | 12 July | Wages | 600 | ||||
| 10 July | Cash | C | 800 | 15 July | Cash | C | 300 | ||
| 15 July | Bank | C | 300 | 31 July | Balance c/d | 600 | 9,000 | ||
| 2,000 | 10,800 | 2,000 | 10,800 | ||||||
| 1 August | Balance b/d | 600 | 9,000 |
Debit = receipts, Credit = payments; contra entries marked 'C'.
Common layout errors
Related chapters and procedures
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