Cash Book

Cash Book

Cash book is a combination of cash account and bank account into one book. Getting the format of cash book correctly is very important in scoring a full mark in this topic.

Three Column Cash Book

Cash Book

In the cash book, the third column (from the left) shows the cash account while the fourth (from the left) shows the bank account.

Contra Entry

A contra entry has almost the same meaning as the double entry system: you will need to enter two transactions into the cash book.

For example,
1) Cash sales banked. *banked means deposited.
Credit the cash account and debit it to your bank account.

2) Withdraw cash from bank for office use.
Credit bank account and debit it to your cash account.

Remember to put C in the folio as an indicator of contra entry, for both side.

Updated on 14/11/2017

  1. Edited grammatical errors.
  2. Amended the content for better understanding.

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