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Pass Book and Cash Book

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Pass Book

Each depositor gets a pass book and cheque book from the bank. The passbook is the copy of the depositor's account in bank's ledger. It's another form is the bank statement. It is a summarized statement of all deposits and withdrawals made by the depositor during a certain period of time. The entries of all deposits and withdrawals made by the client are passed in the passbook by the bank. The passbook shows the balance of the client after each deposit and withdrawal.

Cash Book

A cash book is a primary record of all the receipts and payments made in cash and through the bank. It has the features of the primary book and principle book. It is different from cash account as it is only a principle book. It has two sides i.e. debit side and credit side. The debit side shows cash receipts and the credit side shows cash payments. All cash and cheques received and deposited are shown on the receipt side. All payments made by cash and cheques are shown on the payment side. At the end of a given period, its balance is obtained to know the amount of cash and bank balances.

Types of Cash Book

A business maintains one of the following types of cash book as per its requirements:

.

Simple Cash Book

It is a single column cash book. It contains only one amount on its both sides. It records only cash receipts and payments. It is similar to the cash account. It records all cash receipts on its receipt side and all cash payments on its payment side. It is balanced usually on the daily basis to report the amount of cash lying in the cash book. After its preparation, individual accounts are opened in the ledger.

Simple Bank Book

A simple bank book is similar to a bank account. It contains only one amount column on its both sides. It records only those transactions which are performed through the bank. It records the cheque received and deposited on its receipt side and the cheque issued on its payment side. It is suitable for a business which follows the practice of receiving and paying amount only through cheque.

Cash Book with Cash and Discount Columns

It is a type of double column cash book. If a business performs transactions mostly in cash by allowing and receiving discount then it will be suitable to maintain this type of cash book. Cash receipt and discount allowed are entered on receipt side and cash payment and discount received are entered on the payment side. It does not record cheques or banking transactions.

Cash Book with Bank and Discount Columns

It is a type of double column cash book having bank and discount columns. A business allows cash discount to its customers at the time of receiving cash. The amount of cash received and discount allowed are entered on receipts side. The business receives a discount from its suppliers at the time of paying cash to them. The amount of cash paid and discount received are entered on the payment side.

Cash Book with Cash and Bank Columns

It is combined form of simple cash book and bank book. The cash column records receipts and payments in cash and bank column records receipts and payments through bank. The cheque received and deposited is recorded on receipt side and cheque issued on payment side under bank column. The cash and bank columns are balanced to know cash and bank balances. The cash column always shows debit balance but the bank column either shows debit balance or credit balance. It contains contra entry for the amount of cash deposited into and withdrawn from the bank.

Contra Entry

The act of entering a cash transaction both on receipt and payment sides under cash and bank columns is called contra entry. It is the indication of completing double effect which does not require posting.

Cash Book with Cash, Bank and Discount Columns

It is also known as triple column cash book as it contains three amount on its both sides. These three columns are cash, bank, and discount. The amount of cash and cheque received and discount allowed are entered on receipt side and the amount of cash and cheque given and discount received are entered on the payment side.



  • A cash book is a primary record of all the receipts and payments made in cash and through bank. It has the features of primary book and principle book. 
  • The act of entering a cash transaction both on receipt and payment sides under cash and bank columns is called contra entry. 
  • The passbook is the copy of the depositor’s account in bank’s ledger. 
  • The another form is of pass book is the bank statement. 
.

Very Short Questions

Solution:

Dr.

Cash a/c

Cr.

Date

Particulars

JF

Amt Rs.

Date

Particulars

JF

Amt Rs.

Feb 1

To capital a/c

1,00,000

Feb 3

By bank a/c

80,000

Feb 5

To sales a/c

40,000

Feb 16

By purchase a/c

5,000

Feb 30

To Everest bank’s a/c

25,000

Feb 18

By wages a/c

10,000

Feb 26

By commission a/c

6,000

Feb 31

By refreshment a/c

3,000

Feb 31

By balance c/d

61,000

1,65,000

1,65,000

61,000

Solution:

Dr.

Bank a/c

Cr.

Date

Particulars

JF

Amt Rs.

Date

Particulars

JF

Amt Rs.

Ashad 1

To balance b/d

20,000

Ashad 4

By purchase a/c

5,000

Ashad 7

To Rudra’s a/c

10,000

Ashad 15

By salary a/c

7,000

Ashad 21

To debtors a/c

4,000

Ashad 18

By office equipment

6,000

Ashad 30

To sales a/c

15,000

Ashad 26

By cash a/c

4,000

Ashad 31

By balance c/d

27,000

49,000

49,000

Shrawan 31 To balance b/d

27,000

Solution:

Dr.

Cash book with cash and discount column

Cr.

Date

Particulars

JF

Cash

Discount

Date

Particulars

JF

Cash

Discount

Jan 1

To balance b/d

24,000

Jan 6

By typewriter’s a/c

1,800

Jan 2

To Hari’s a/c

2,400

80

Jan 9

By purchase a/c

26,000

Jan 15

To sales a/c

7,600

Jan 16

By Gautam’s a/c

1,600

160

Jan 20

To Shyam’s a/c

2,720

280

Jan 18

By printing a/c

300

Jan 25

To Kumar’s a/c

3,200

160

Jan 30

By wages a/c

1,600

Jan 31

By balance c/d

8,620

39,920

520

39920

160

Feb 1

To balance b/d

8,620

Solution:

Dr.

Cash book with bank and discount column

Cr.

Date

Particulars

JF

Bank

Discount

Date

Particulars

JF

Bank

Discount

02-01

To cash a/c

1,00,000

02-04

By purchase a/c

20,000

02-09

By cash a/c

15,000

02-09

By drawing a/c

5,000

02-12

By rent a/c

5,000

02-17

By Sohan’s a/c

9,000

900

02-31

By balance c/d

46,000

1,00,000

1,00,000

900

-

03-01

To balance b/d

46,000

-

Solution:

Dr.

Triple column cash book

Cr.

Date

Particulars

JF

Cash

Bank

Dis

Date

Particulars

JF

Cash

Bank

Dis

03-01

To balance b/d

150

03-03

By bank a/c

c

500

03-02

To Om’s a/c

c

990

10

03-04

By purchase a/c

2,500

03-03

To cash a/c

500

03-09

By Madan’s a/c

980

20

03-07

To Shanti’s a/c

700

03-10

By wages a/c

100

03-08

To sales a/c

700

03-11

By telephone bills a/c

60

03-16

To Suraj’s a/c

590

10

03-31

By balance c/d

1,770

4720

2,430

8,200

20

2,430

8,200

20

04-01

To balance b/d

1,770

4,720

0%
  • The ______ is a summarized statements of all deposits and withdrawals made by the depositor during a certain period of time.

    subsidiary book
    ledger book
    passbook
    cashbook
  • A ______ is a primary record of all the receipts and payments made in cash and through bank.

    passbook
    cashbook
    subsidiary book
    ledger book
  • The act of entering a cash transaction both on receipt and payment sides under cash and bank columns is called ______.

    tender sheet
    contra entry
    journal entry
    cost sheet
  • ______ is the indication of completing double effect which does not require posting.

    Tender sheet
    Cost sheet
    Journal entry
    Contra entry
  • ______ is also known as triple column cash book as it contains three amount on its both sides.

    Cash Book with Cash and Bank
    Cash Book with Cash and Discount Columns
    Cash Book with Bank and Discount Columns
    Cash Book with Cash, Bank and Discount Columns
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