The Double Column Cash Book

In one of the previous chapters, the cash account was treated and in the chapter, receipts and payments in cash only are involved. We have also to consider the entries required whenever cheques also are used as one of the means of payment.

Even though the cash and bank accounts are ledger accounts and so they are sometimes kept in a book from the general ledger accounts.

The double column cash book enables both the cash and bank balances to be found out at a quick look without turning to a separate accounts as a form of ruling.

We should note the following important things thus:

  1. Date – This refers to the day the transactions took place.
  2. Narration – Here, the account written first is debited on the debit column while the next account is to be credited on the credit column and also the reason(s) for the transaction is to be stated. 
  3. Folio (fo.) – This refers to the page of accounts that is required if the need to trace it is required. 
  4. DR. Column-Here is the debit column where the debit items are to be recorded. 
  5. CR. Column- This is where we record all the credit items.

The essence of journalising in accounting is to tell one what is to be put in the ledger. It also tells one which account is to be debited and which is to -be credited.

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