The Cash transaction is a transaction carried out only out of cash . The cash transactions
are recorded in the subsidiary book known as cash book. The cash book can be classified
into three categories
Single columnar cash book
Double columnar cash book
Three columnar cash book
Single columnar cash book: It is a book generally records the transactions into two
classification viz Payments and Receipts. The receipts and payments are recorded in
the debit and credit side of the cash book respectively. The debit and credit side
transactions of the cash book are prefixed with "To" and "By" respectively.
Double Columnar Cash Book:
It is another kind of cash book which is nothing but extension of earlier versioned single
columnar cash book. The double columnar cash book includes the operations of the
enterprise into two different categories viz transactions through Cash and Bank. It
means that the entire receipts and payments of the business routed through cash and
bank. The transaction of the business with the bank either at the moment of cash
withdrawal or cash deposit leads to register the movement of cash from one entity to
another through the contra entries. The contra entries are posted in two different occasions viz cash withdrawal and cash deposit. During the cash withdrawal, the movement of cash is depicted below for easier understanding, which is nothing but the movement of asset from bank to firm.
Three Columnar Cash Book:
It is another dimension of cash book which has three component of operations of the
enterprise viz Cash, Bank and Discount. This cash book is extension of the early one, not
only which incorporates the receipts and payments of the firm through cash and bank
but also discount allowed and received.
Multi columnar Cash Book:
The regular receipts and payments on various heads require the firm to design not only
a most suited cash book which is in a position to incorporate all the entries of cash in
nature but also to reduce the excessive labour involved in the process of sorting out
them. To replace the bottlenecks of the three columnar cash book, multi columnar cash
book is developed which is in a position to highlight the receipts and payments of a firm
under various accounting heads within a specified period. Under this system of cash
book, the firm is required to register the payments and receipts of the respective heads
only in the columns especially provided for determining the balance under each at the
end of the specified month
Petty cash Book:
It is a book maintained by the petty cashier who is especially appointed for the purpose
to assist the cashier of the business enterprise in order to meet the day to day expenses
of meager in volume. The cashier normally hands over a certain sum of money to the
petty cashier to meet out tiny expenses of the enterprise based on the early estimation on
the daily requirement e.g., postage, refreshment charges. The meager amount which isgiven by the cashier is known in other words as petty cash or float. The vouchers and
receipts are finally examined by the cashier based on the presentation of petty cash
book balance.

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