Double-Column Cash Book
The cash book is both a journal and a ledger: it records all receipts and payments of cash and through bank in chronological order and simultaneously serves as the Cash A/c and Bank A/c. A double-column cash book has separate Cash and Bank columns on both the receipts (debit) and payments (credit) sides.
How this tool works
Enter the opening balances as the first row (Cash In and Bank In), then each transaction with the amount in the appropriate column: Cash In / Cash Out for currency, Bank In / Bank Out for cheques, UPI, NEFT and card. Running cash and bank balances are computed per row. The summary shows closing balances, totals and a receipts-vs-payments chart, warns if cash goes negative and counts contra entries.
Contra entries
When cash is deposited into the bank or withdrawn from it, both columns are affected: cash deposited is Cash Out and Bank In of the same amount. Such entries are marked "C" in the ledger folio and are not posted to any other ledger account because both aspects are already inside the cash book.
Worked example
Opening: cash ₹25,000, bank ₹1,40,000. Cash sales ₹18,500 (Cash In). Rent by cheque ₹12,000 (Bank Out). Cash deposited ₹20,000 (Cash Out ₹20,000 and Bank In ₹20,000 — contra). Wages ₹4,500 (Cash Out). UPI received from Ramesh & Co. ₹32,000 (Bank In). Closing cash = 25,000 + 18,500 − 20,000 − 4,500 = ₹19,000; bank = 1,40,000 − 12,000 + 20,000 + 32,000 = ₹1,80,000.
Cash vs bank balance
The cash column can only have a debit balance — you cannot pay out cash you do not have. The bank column may show a credit balance when the account is overdrawn. The bank column balance should be reconciled with the bank statement periodically using the Bank Reconciliation Statement tool.
Frequently Asked Questions
What is a three-column cash book?
It adds a Discount column (discount allowed on the debit side, discount received on the credit side) to the cash and bank columns. Enter discounts as separate ledger entries if you use this two-column version.
How do I record a cheque received and deposited the same day?
Enter it directly in the Bank In column. If deposited later, record it in Cash In first and pass a contra entry on the deposit date.
Why does the tool warn about negative cash?
Physical cash in hand cannot be negative. The warning helps catch a missed receipt or a payment entered in the wrong column.
Does the day book replace a ledger?
The cash book is itself the ledger for Cash and Bank; other accounts (sales, rent, parties) still need to be posted from it.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.