A two column cash book is one in which there are two columns on each side. One is used to record cash transactions, the second is used to record bank transactions or discount. When a trader keeps a bank account it becomes necessary to record the amounts deposited into bank and withdrawals from it.

Double column cash book is a type of cash book that has two columns on each side - one for cash transactions and the other for bank transactions. It is used to record both cash and bank transactions in a systematic manner. Let's explore the different types of records that can be maintained in a double column cash book:

a) All transactions:
- The double column cash book can be used to record all types of transactions, including cash transactions and bank transactions.
- This includes both inflows and outflows of cash and bank, such as sales, purchases, payments, receipts, etc.
- By recording all transactions in one book, it provides a comprehensive view of the company's financial activities.

b) Only cash transactions:
- The cash column of the double column cash book is used to record all cash transactions.
- This includes cash receipts and cash payments, such as cash sales, cash purchases, salaries paid in cash, etc.
- By recording only cash transactions, it provides a detailed record of cash inflows and outflows.

c) Only credit transactions:
- The bank column of the double column cash book is used to record all bank transactions.
- This includes bank receipts and bank payments, such as payments made through cheques, deposits, withdrawals, etc.
- By recording only credit transactions, it provides a detailed record of bank-related activities.

d) Cash and bank transactions:
- The double column cash book is primarily designed to record both cash and bank transactions.
- It has separate columns for cash and bank, allowing for a clear distinction between the two types of transactions.
- This enables the company to track both cash and bank balances simultaneously and reconcile them with the bank statement.

In conclusion, the correct answer is option 'D' because the double column cash book is used to record both cash and bank transactions. It provides a comprehensive record of all financial activities and allows for a clear distinction between cash and bank transactions.

D