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Double Column Cash Book Questions with Solutions

Meaning of Double Column Cash Book

The double-column cashbook has two columns of amounts on both sides. The two columns of amount may be either cash and discount columns, cash and bank columns, or bank and discount columns. Hence, the double-column cash book may be of three types.

  • Cash and Discount Columns
  • Bank and Discount Columns
  • Cash and Bank Columns

Contra Entry

The entries which affect both sides of Cash Book are known as contra entries. To notify the contra entry, the alphabet “C” is mentioned in the LF column on both sides of the Cash Book. Examples of contra entries are

  • Deposited cash into the bank.
  • Withdrawn cash from the bank for office use.
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Question and Solution of Double column cash book

Cash and Discount Columns Problems 

Problem 1

The following cash transactions for the month of February are given to you

Feb. 1. Balance of cash in hand 13200

         5. Paid 7200 for purchase of goods after deducting 50 as a discount

         7. Received cash of 4500 from Kumar Lal after deducting the discount of 75

       20. Paid wages of 500

       30. Paid 1275 to Ram Lal after deducting the discount of 25

Required: Double-column cash book      (Ans: Cash balance 8725)

Problem 2

Enter the following transactions into the Double-columned Cash Book with cash and discount columns

2013 Jan 1. Tarun commenced a business with cash of 10000

               He pays 2300 for goods bought; 500 for furniture purchased; 400 for office equipment.  

               2. He pays rent 100; pays legal costs at 10

               3. He sells goods for cash 1800

               4. He sells goods to Naresh on credit 800

               5. He pays wages 15; cartage 5

               6. He buys goods for cash 700 and pays 425 to the creditor for full settlement of claim 430

               7. He receives cash from Naresh allowing a discount of 2

               8. He sells goods for cash 50        (Ans: Cash balance 8193)


Bank and Discount Column Problem

Problem 1

Enter the following transactions of Kamal on the double-column cashbook with Bank and Discount Columns: Assume that all the transactions are carried through the bank. 

2000 Jan 1. Balance at bank 700

               Jan 7. Purchase goods on credit from Bikash 1500

               Jan 9. Insured the stock in hand and paid an insurance premium of 70

               Jan 10. Sold goods to Basant worth 2000 and received cash after allowing a discount of 10%

               Jan 15. Paid to Bikash and received a discount of 5%

               Jan 20. Paid to Bikram (Discount received 20) 980

               Jan 25. Received from Amrit 570 in full settlement of his debt of 600       

                                                                                          (Ans: Bank balance 545)

Problem 2

The following transactions are given

Jan 2. Balance at bank, 2500

Jan 2. Received from Krishna 950 in full discharge of his account for 1000

Jan 3. Paid Mohamod’s account of 400, less discount at 2 percent

Jan 4. Drew cheque for 900 of which 800 was for payment of wages and 100 for petty cash.

Jan 5. Received From Pravat a cheque for 1000 and allowed his 50 discount

Jan 6. Received 450 from Henson in full discharge of his debt of 470

Jan 7. Paid 650 to Mr. Brwon in full settlement of his account for 680

Required: Cash book with necessary column        (Ans: Bank balance 2958)

Problems of Cash and Bank Column

Problem 1

The following cash and banking transactions are given:

2003 Dec. 1: Cash balance 350000

               12: Deposited into Bank 300000

               13: Purchased goods for cash 20000

               15: Received cash of 4000 from S. Company.

               25: Paid wages by cheque 40000

               28: Withdrawn cash from the bank for private use 5000

Required: Double column cash book       (Ans: Cash balance 34000; Bank balance 255000)

Problem 2

Write up the Cash Book with Cash and Bank Column from the following transactions for the month of March

1             Balance of Cash at office 7220 and overdraft balance at bank 21350

4             Sold goods for 1500 and received cheque for 11000 and balance in cash

5             Deposited into bank 7000

10           Received cash from Mr. Kama 5400 and allowed sum a discount of 100

15           Paid into bank 8000

22           Purchased goods from Mr. Shrestha for 15000 and issued a cheque for 6000 only as part payment.

(Ans: Cash balances Dr. 1620; Bank balances Cr. 1350)

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