Can Someone Describe The Double Column Cash Book And Its Advantages?

The cash A/c and bank A/c are two business accounts in ledger and they should be removed from the ledger to reduce its volume and size. As you might now that the cash A/c is removed from the ledger and instead of it the cash book is kept to record transactions. In the same way no bank A/c is opened in ledger for recording bank transactions, rather an additional amount column is provided on each side of 'Single Column Cash Book' for recording the transactions.

One more column for amount is provided on the debit side and one on credit side of 'Single Column Cash Book'. These two amount columns on debit side and credit side will serve as bank A/c and so it will not be necessary to open a bank A/c in the ledger. The cash book having two amount columns on both sides is called 'Double Column Cash Book'.
Here are few advantages derived from double column cash book;
1. All entries made in "Bank" column of double column cash book from a part of double entry system and hence a separate bank A/c need not to be opened in ledger. It saves time, labour and cost.

2. Both cash transactions and bank transactions are recorded in the same book. So both cash balance and bank balance are easily available from the same book.
Thus it is said that the double column cash book has two accounts in it, the cash A/c and the bank A/c.