Double Column Cash Book

True Tamplin

Written by True Tamplin, BSc, CEPF®
Updated on September 15, 2021

A double column cash book, also known as a two column cash book, consists of two columns on each side to record cash and bank transactions.

Rather than separating cash and bank accounts, a double column cash book enables accountants to maintain the two accounts side by side. This allows for greater convenience when recording transactions. In particular, we can quickly see overall balances.

Simply by adding a bank column to both sides of a single column cash book, we can turn it into a double column (or two column) cash book.

Advantages of Double Column Cash Book

Compared to single column cash books, double column cash books have the following advantages:

  • Convenience: Cash and bank accounts are kept side by side in one place.
  • Cost– and time-effective: No separate bank account needs to be maintained.

Format/Specimen of Double Column Cash Book

The format of a double column cash book is similar to a single column cash book. The exception is that an additional column is included on both sides to record cash discount.

An overview of the format of a double column cash book, which is commonly used by organizations to account for their cash transactions, is shown below.
Double Column Cash Book Specimen

Posting the Double Column Cash Book

The following procedure is used to post entries from a double column cash book to ledger accounts:

  1. Entries without discounts are posted in the usual manner, as in a single column cash book.
  2. Entries with discounts that appear on the debit side are posted to the credit of the respective account with the total amount (i.e., actual cash paid and also discount received).
  3. Entries with discounts that appear on the credit side are posted to the debit of the respective account with the total amount (i.e., actual cash paid and also discount received).
  4. Total of the discount column on the debit side is posted as debit to the discount allowed account.
  5. Total of the discount column on the credit side is posted as credit to the discount received account.


Prepare a double column cash book using the following transactions, and post the entries, therefore, to ledger accounts.

For the year 2016, the transactions are as follows:

Jan. 01: Opening balance of cash $4,500
Jan. 03: Received cash from R & Co. $3,880 and allowed them a discount of $20
Jan. 05: Paid cash to H & Co. $3,590 and received a discount of $10
Jan. 07: Merchandise purchased for cash $940
Jan. 09: Received interest on investment $365
Jan. 12: Purchased machinery for cash $4,100
Jan. 15: Cash sales for the first half of the month $6,500
Jan. 17: Paid cash for stationery $635
Jan. 20: Paid for office furniture $710
Jan. 21: Paid to H & Co. $970 and received a cash discount of $30
Jan. 28: Cash received from R & Co. $670 and allowed them a discount of $30
Jan. 31: Cash sales for the second half of the month $7,600
Jan. 31: Paid for salaries $1,250


Double Column Cash Book for January 2016

General Ledger

Interest Income in General Ledger
Sales in General Ledger
Purchases in General Ledger
Machinery in General Ledger
Stationery in General Ledger
Office Furniture in General Ledger
Salaries in General Ledger
Discount Received in General Ledger
Discount Allowed in General Ledger

Accounts Receivable Ledger

Overview of Accounts Receivable Ledger

Accounts Payable Ledger

Overview of Accounts Payable Ledger

Cashbook Exercises

Certified Public Accounting Services

Ramon Ortega CPA

No need to hit the books

Here in Finance Strategists, we got you covered. Should you have more questions about this topic, feel free to reach out to a financial advisor in Boston, MA or visit our financial advisor page for more info.

True Tamplin, BSc, CEPF®

About the Author
True Tamplin, BSc, CEPF®

True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.

True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.

To learn more about True, visit his personal website, view his author profile on Amazon, his interview on CBS, or check out his speaker profile on the CFA Institute website.

17 thoughts on “Double Column Cash Book”

  1. i think you guys can be very helpful to me because i can now understand the things i didn’t get quite well. Thank you so much. Hope to come back again and again

  2. started business with 2,500 in the bank and 500 cash… My friends and I argued about the side that is giving and the side that is receiving… I will need you to shed more light on this, I argued that capital is receiving and they said it is giving out.. If it giving why do we record it on the Dr side of the cash book and not on the credit side

  3. Started business with cash and furniture for 20000 and 50000 respectively . How to post them to double column cash book.

  4. I started a business with cash balance of 50000 on debt side and bank balance of 10000 on credit side , so how do I record this one

    • Goods sold on credit isnt posted in two column cash book. Rather it’d be posted on sales day book and purchases day book

  5. Please help
    When there’s bank overdraft in two column cash book as follow:
    Cash in hand #2000
    Bank overdraft #3000 …where are they going to be posted.
    Another transactions:
    Jan13: cash received from Ojo and cheque from Dada.
    Jan 14: Paid cash and cheque received on 13 into the bank …where the transactions will be recorded..?

  6. Date Narration Amount $
    Oct 1 Deposited cash in bank account 2 000
    Oct 5 Cash sales 1 100
    Oct 6 Deposited cash in the bank account 1 100
    Oct 7 Paid wages by cheque 1 000
    Oct 10 Withdrew cash from bank for office use 500
    Oct 13 Bought stationary for cash 300
    Oct 17 Cash sales 1 900
    Oct 18 Deposited cash in bank account 1 900
    Oct 21 Paid wages by cheque 1 000
    Oct 25 Cash sales 2 300
    Oct 26 Deposited cash in bank account 2 300
    Oct 27 Paid salaries by cheque 2 800
    Oct 28 Paid wages by cheque 1 000
    Oct 30 Cash sales 2 800
    Oct 31 Deposited cash in bank account 2 800
    Oct 31 Bought office furniture and paid cheque 7 500
    You are required to:
    a) Write up the two column cash book of B Bare and [16]
    b) Balance off the accounts in the cash book. [4]

  7. please who can solve these for me
    Three Cash Book
    Danladi is atrader. On 1st may, 2013, he had ₦24,375 as cash and bank balance of ₦468,900. He had the following transactions for the month:
    May 3 – Received the sum of ₦79,875 form A. Bola
    May 6 – Sum of ₦15,000 was received in cash from O. Kunle
    Settled the account Ponle and Co. ₦54,000 by cheque after deducting 5% cash discount
    May 7 – Deposited ₦37,500 into the bank
    May 8 – Paid wages of ₦56,200 by cash
    % discount
    May 15 – Laraba settled her account of ₦56,250 less 5% discount
    Received a cheque of ₦64,125 from Biodun after allowing a discount of ₦3,375. The cheque was deposited into the bank immediately.
    May 20 – Paid tax office the sum of ₦5065 by cash.
    % discount from Julius; paid wages of ₦56,250 in cash.
    May 26- Chukwu’s account of ₦1,250 was settled by cheque after deducting 5% discount.
    May 27- Received from olu the sum of ₦106,875 after allowing a cash discount of ₦5,625.
    Mayb28- Paid wages by cheque ₦56,250 and withdrew ₦3,750 by cheque for private use.

    You are required to:
    i. prepare a Three-Column Cash Book of Danladi for the month of May, 2013.
    ii. post the transactions to ledgers.


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