PPT - Cash book | Principles and Practice of Accounting - CA Foundation PDF Download

 Page 1


Cash Book 
CPT Section A Fundamentals of Accounting Chapter 2 
Unit 5 
CA. K. Shanmuganathan , FCA,ACMA 
 
Page 2


Cash Book 
CPT Section A Fundamentals of Accounting Chapter 2 
Unit 5 
CA. K. Shanmuganathan , FCA,ACMA 
 
Learning Objectives 
2 
Learn the technique of preparation of Simple Cash Book and how to balance it. 
See how Double-Column Cash Book is  prepared adding discount column along with 
cash column. 
Understand the techniques of preparing Three-column Cash Book. 
Understand what is a Petty Cash Book and the Imprest System of Petty Cash. 
Learn how to maintain a Petty Cash Book and how to post the entries of the Petty Cash 
 Book in the ledger. 
Page 3


Cash Book 
CPT Section A Fundamentals of Accounting Chapter 2 
Unit 5 
CA. K. Shanmuganathan , FCA,ACMA 
 
Learning Objectives 
2 
Learn the technique of preparation of Simple Cash Book and how to balance it. 
See how Double-Column Cash Book is  prepared adding discount column along with 
cash column. 
Understand the techniques of preparing Three-column Cash Book. 
Understand what is a Petty Cash Book and the Imprest System of Petty Cash. 
Learn how to maintain a Petty Cash Book and how to post the entries of the Petty Cash 
 Book in the ledger. 
Cash book 
3 
Cash transactions are straightaway recorded in the Cash Book 
and on the basis of such a record, ledger accounts are 
prepared. Therefore, the Cash Book is a subsidiary book. 
But the Cash Book itself serves as the cash account and the 
bank account; the balances are entered in the trial balance 
directly. The Cash Book, therefore, is part of the ledger also. 
Hence, it has also to be treated as the principal book. The Cash 
Book is thus both a subsidiary book and a principal book. 
Page 4


Cash Book 
CPT Section A Fundamentals of Accounting Chapter 2 
Unit 5 
CA. K. Shanmuganathan , FCA,ACMA 
 
Learning Objectives 
2 
Learn the technique of preparation of Simple Cash Book and how to balance it. 
See how Double-Column Cash Book is  prepared adding discount column along with 
cash column. 
Understand the techniques of preparing Three-column Cash Book. 
Understand what is a Petty Cash Book and the Imprest System of Petty Cash. 
Learn how to maintain a Petty Cash Book and how to post the entries of the Petty Cash 
 Book in the ledger. 
Cash book 
3 
Cash transactions are straightaway recorded in the Cash Book 
and on the basis of such a record, ledger accounts are 
prepared. Therefore, the Cash Book is a subsidiary book. 
But the Cash Book itself serves as the cash account and the 
bank account; the balances are entered in the trial balance 
directly. The Cash Book, therefore, is part of the ledger also. 
Hence, it has also to be treated as the principal book. The Cash 
Book is thus both a subsidiary book and a principal book. 
Kinds of Cash book 
The main cash book may be of three types: 
Simple cash book 
Two column cash book 
Three column cash book 
4 
Page 5


Cash Book 
CPT Section A Fundamentals of Accounting Chapter 2 
Unit 5 
CA. K. Shanmuganathan , FCA,ACMA 
 
Learning Objectives 
2 
Learn the technique of preparation of Simple Cash Book and how to balance it. 
See how Double-Column Cash Book is  prepared adding discount column along with 
cash column. 
Understand the techniques of preparing Three-column Cash Book. 
Understand what is a Petty Cash Book and the Imprest System of Petty Cash. 
Learn how to maintain a Petty Cash Book and how to post the entries of the Petty Cash 
 Book in the ledger. 
Cash book 
3 
Cash transactions are straightaway recorded in the Cash Book 
and on the basis of such a record, ledger accounts are 
prepared. Therefore, the Cash Book is a subsidiary book. 
But the Cash Book itself serves as the cash account and the 
bank account; the balances are entered in the trial balance 
directly. The Cash Book, therefore, is part of the ledger also. 
Hence, it has also to be treated as the principal book. The Cash 
Book is thus both a subsidiary book and a principal book. 
Kinds of Cash book 
The main cash book may be of three types: 
Simple cash book 
Two column cash book 
Three column cash book 
4 
Petty cash book 
5 
In addition to the main Cash Book, firms 
also generally maintain a petty cash 
book but that is purely a subsidiary book.