DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : K.HANUMANTHA RAO
Designation : Head of Section
Branch : Commercial & Computer
Practice (CCP)
Institute : GPW/Guntur
Year/Sem : I Yr
Subject : ACCOUNTANCY-I
Sub-Code : CCP-102
Topic : CASH BOOK
Duration : 50 minutes
Sub Topic : Double Column Cash Book
(Bank & Discount)
Teaching Aids : PPT, ANIMATIONS
CCP102.56 1
Objectives

At the end of the period, the student will be

able to :
 Prepare Double Column Cash Book with Bank
& Discount Columns

CCP102.56 2
The Businessman maintains Double Column
Cash Book in two ways:
 Cash Book with Cash and Discount Columns
 Cash Book with Bank and Discount Columns

CCP102.56 3
 2 Column Cash Book
(with Bank and Discount Columns)

CCP102.56 4
  Double column cash book i.e, bank and
discount
 Columns prepared by the modern business
concerns.
 For safety reasons do not carry out their

 Transactions in the form of cash

 The payments and receipts are made

 Through cheques

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 ONLY BANK transactions are recorded in this book
 Bank Balance is ascertained DAILY
 It is also called “Two Column Cash Book”

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 In two column cash book, discount

allowed and discount received along with

the bank payments and bank receipts are

recorded
 Discount allowed is the concession given by

the businessmen to his customers

 Discount received is the concession received

by the businessmen from the suppliers

CCP102.56 7
Proforma of Double Column Cash Book

CCP102.56 8
Proforma of Double Column Cash Book
(Bank & Discount)

Dr Cr

Date Particulars L Discount Bank Date Particulars L Discount Bank

F Allowed Rs. F Allowed Rs.

CCP102.56 9
Remember these points before preparing
Double Column Cash Book

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 Record all bank receipts and discount
allowed on debit side/left hand side of the
double column cash book

 Record all bank payments and discount

Received on credit side/right hand side of
the double column cash book

 The bank column shows usually debit balance

but some times it can show a credit balance also

CCP102.56 11
How to enter the transactions in Double Column
Cash Book

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1. First read the transaction.
2. Think whether cheque is received or
payment by cheque.
3. If cheque is received, record in bank column
on the debit side of the double column cash
book
4. If discount is there in the transaction, record
the same in discount allowed column.
5. Record the date of the transaction in date
column
6. Record in particulars column from whom the
cheque is received/cause of Receipt
CCP102.56 13
1. If cheque is issued, Record the same in bank
column on the credit side of the double column
cash book.
2. If discount is there in the transaction record the
same in discount received column
3. Record the date of the transaction in date column.
4. Record in particulars column to whom the cheque
is issued/cause of payment.
5. Follow the above steps for every transaction.
6. Balance the double column cash book.
7. Simply total the discount columns and record the
same
CCP102.56 14
Example 1: Prepare a Double column cash book with
bank and discount columns in the books of Shyam.
2007 April 1 Opening Balance Rs.20,000
3 Cash Sales Rs.15,000
12 Radhe Shyam paid through cheque Rs1,000;
Discount Rs.75
20 Cash Purchases Rs.1,400
24 Furniture purchased Rs.1,500.(payment
through cheque )
26 Withdrawn from bank for personal use
Rs.800.
28 Salaries paid through cheque Rs.1,500.
30 Cash paid to Ram Rs920; Discount received
Rs.80.
CCP102.56 15
Double Column Cash Book (Bank &
Discount) of Shyam
Dr.
Cr.
Date Particulars L Discount Bank Date Particulars L Discount Bank
F Allowed Rs. F Allowed Rs.
2007 2007
Apr.1 To opening 20,000 Apr 8 By purchases 1,400
3 balance 24 By furniture 1,500
12 To sales 15,000 26 By drawing 800
To Radhe 75 1,000 28 By salaries 1,500
shyam 30 By Ramu 920
30 By Balance 80 29,880
75 36,000 c/d 80 36,000

May
1 To balance
b/d 29,880
CCP102.56 16
Summary

 All Cheque Receipts and Discount Allowed are

recorded on the debit side of the Double Column

Cash Book.
 All Payments by Cheque and Discount Received

are recorded on the credit side of the Double

Column Cash Book.

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 Quiz

1. Cheque received from Krishna and Discount

Allowed recorded on

a) Debit Side
b) Credit Side
c) None of the above

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Quiz

2. Cheque Issued To Sagar And Discount Received

Recorded On

• Debit Side
• Credit Side
• None of the above

CCP102.56 19
Frequently Asked Questions in Examinations

3. Prepare a Double column Cash Book and show the

bank balance the books of Chandra
2005 Jan 1 Bank debit balance Rs.15.000.
5 cash received from Srinivas Rs.1,250.
8 Payment made to Ramesh Rs.1,400;
discount received Rs.25.
15 Purchase Rs.5,000.

CCP102.56 20
 16 Salaries paid Rs.2,250.
18 Wages paid Rs.150.
22 Cash from Mahesh Rs.1,000.
24 Furniture purchased Rs.1,400;discount Rs.100.
28 Received from Rahul Rs.1,230;discount Rs.20.
30 Office Expenses paid Rs.100.
ANS: Bank balance Rs.10,730; Discount allowed
Rs.120; Discount received Rs.25

CCP102.56 21
Thank You

CCP102.56 22