Accounting: Meaning of Cash Book and Different Types of Cash Book: Simple, Bank Column and Petty Cash Book (For CBSE, ICSE, IAS, NET, NRA 2022)

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Cash Book

  • Every business transaction is recorded in Journal Book. Single Book will be maintained if there are limited transactions. If the number of transactions is more, maintaining all the transactions in single book is inconvenient. Journal needs to be divided into many books based on nature of the transaction. Cash book for cash transactions, Sales Book for credit sales, Purchase book for credit purchases and so on. Cash book is having very importance in business.
  • Cash Book is a book in which all cash receipts and cash payments are recorded.
  • It starts with the cash or bank balance at the beginning of the period.
  • For new business there will be no cash balance.
  • Cash book can be classified into three books.
  • Simple Cash Book
  • Bank Column Cash Book
  • Petty Cash Book

Simple Cash Book

  • It records only cash receipts and cash payments.
  • All cash receipts are recorded on the debit side (left side) .
  • All cash payments are recorded on the credit side (right side) .
  • At the end of the month, cash book is balanced as account is balanced in the ledger.
  • The difference if any is entered on the credit side of the cash book under the particulars column as balance C/D.
  • The closing balance of the credit side becomes the opening balance for the next period and is written as Balance b/d on the Debit side.

Format of Simple Cash Book

Table Supporting: Simple_Cash_Book
DateParticularsL. F.Amount (₹)DateParticularL. FAmount (₹)

Column-Wise Explanation

  • Date: In this column Year, Month and Date of transactions are recorded in chronological order.
  • Particulars: In this column, the name of the account in respect of which cash has been received or payment has been made is written.
  • L. F (Ledger Folio) : In this column, the page number of the ledger book on which relevant account is entered.
  • Amount: It records the amount received on debit side and cash paid on its credit side.


Prepare Cash Book for the month of April 2006 and also post them into ledger.

Table Supporting: Columnwise_explanation
DateDetailsAmount (₹)
April 01Cash in hand17600
April 03Purchased Goods for cash from Rena7500
April 06Sold Goods to Rohan6000
April 10Wages paid in cash500
April 15Cash paid to Neena3500
April 17Cash Sales10000
April 19Commission paid700
April 21Cash received from Teena1500
April 25Furniture Purchased for cash1700
April 28Rent paid3000
April 30Paid Electricity bill in cash1300


Cash Book

Table Supporting: Columnwise_explanation
DateParticularsL. F.Amount (₹)DateParticularL. FAmount (₹)

Apr 01

Apr 17

Apr 21

May 01

Balance b/d

Sales A/c

Teena A/c

Balance b/d





April 03

Apr 10

Apr 15

Apr 19

Apr 25

Apr 28

Apr 30

Apr 30

Purchases A/c

Wages A/c

Neena A/c

Commission A/c

Furniture A/c

Rent A/c

Electric Bill A/c

Balance c/d










Posting of Cash Book in the Ledger

  • Account appearing on the debit side of the Cash Book is posted on the credit side in the relevant ledger.
  • Account appearing on the credit side of Cash Book is posted on the debit side of the relevant ledger.

Note: Cash Book itself is a Cash Account. So, no need of separate Cash A/c will be maintained in the ledger.

Bank Column Cash Book

If the number of bank transactions is large organization need to maintain separate journal book as Bank Book. Instead of having separate Bank Book a column is added on each side of the Simple Cash Book. This type of Book is called as Bank Column Cash Book.

  • All payments into the bank are recorded on the debit side.
  • All withdrawals/payments through the bank are recorded on the Credit Side.

Format of Bank Column Cash Book

Table Supporting: Bank_Column_Cash_Book
DateParticularsL. F.Cash




DateParticularL. FCash (₹)Bank (₹)

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