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Double Column Cash Book

The double column cash book records all cash transactions along with the discount. All cash receipts and discount allowed are recorded on the debit side and all cash payments and discount received are recorded on the credit side as same in single column cash book. The excess of the debit side over the credit side of the cash column represents the cash balance of the enterprise.


Note: Discount column is not balanced. The total of discount columns is transferred to the Profit and Loss account.


Illustration 2
Enter the following transactions in a double column cash book in the books of Amar



Note: The discount columns in the cash book are not accounts. It is a memoranda column meant to provide information about the total discount allowed (debit side) and discount received (credit side).

  • The discount columns are not balanced
  • Their totals are entered in the discount account in the ledger

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