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  1. Two Column Cash Book
  2. Contra Entries
  3. Three Column Cash Book
  4. Discount
  5. Analytical Petty cash Book

Two Column Cash Book

In this type of cash book , two separate accounts cash and bank are combined for the sake of convenience. There will be separate columns for date, particulars, folio, cash and bank.

Cash column: This is where cash receipts and payments are recorded.

Bank column: All payments made by cheque and money received and paid into the bank are recorded here.

Contra Entries

The word contra is a Latin word meaning opposite. In some cases in business, there may be excess cash in hand which needs to be paid into the bank for official use.

These are known as contra entries because both sides of the cash book will have entries concerning each transaction. Contra entries are denoted by “c” or “cc” in the folio columns and on the ledger. A bank that is credited in the cash book will be debited, while cash debited on the cash book will be credited.

Lesson tags: Financial Accounting Lesson Notes, Financial Accounting Objective Questions, SS1 Financial Accounting, SS1 Financial Accounting Evaluation Questions, SS1 Financial Accounting Evaluation Questions First Term, SS1 Financial Accounting First Term, SS1 Financial Accounting Objective Questions, SS1 Financial Accounting Objective Questions First Term
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