Livestock Economics, Marketing and Business Management

PROCEDURE FOR POSTING FROM THE CASH BOOK

• For every item appearing in the debit side, other than opening balance, a credit is given in the corresponding account. If there is discount, it will also be credited to that account.
• Likewise, items appearing on the credit side of cash book will have their debits in the corresponding accounts together with discount if any.
• As for the discount columns, they are totally at the end of each period, and the debit and credit totals carried respectively to the debit and credit sides of the discount account and posted as ‘To Sundries’ respectively.
• Cash book with Bank and Discount Columns only: This type of cash book is maintained where all cash received is banked at once and all payments other than petty items (Which met out of petty cash) are made by cheques.
• As in the previous case, are taken to the two sides of the Discount Account.

Model: Cash book with bank and Discount Columns Only                                                                                                                                                                         

Dr						Cr.
Date	Receipts	V.No.	L.F	Discount Rs	Bank Rs	Date	Payments	V.No	L.F	Discount Rs	Bank Rs
0
0

Three Columnar Cash book

• Cash book with Cash, Bank and Discount Columns only: This is most common and the best from all points of view.
• Here, the entries are made in the respective columns according as whether they increase/ decrease the cash or bank balance.
• At the end of the period , the cash bank balances are balanced, while the discount totals are dealt with as in the case of other types of Cash Book.
• Model: Cash book with Cash, bank and Discount Columns Only                                                                                                                                                      

Dr

Cr.

Date

Receipts

V.No.

L.F

Discount Rs

Cash Rs

Bank Rs

Date

Payments

V.No

L.F

Discount Rs

Cash Rs

Bank Rs

0

0