Q.Two columner cashbook records :

A two-column (double-column) cash book records both cash and bank transactions.

A simple cash book has only one amount column and records cash transactions only. A two-column (double-column) cash book adds a second amount column for the bank so that both cash receipts/payments and bank receipts/payments (deposits, cheques issued and received) are recorded together in the same book, side by side. It does not record ALL transactions (credit transactions involving …

Cash purchases of goods are recorded in the Cash Book, not the Purchase Book.

The Purchase Book (Purchases Journal) is a subsidiary book used ONLY to record credit purchases of goods; a cash purchase, where payment is made immediately, is recorded as a cash payment in the Cash Book. The Sales Book and Purchas …

Credit-related transactions are not recorded in the cash book.

The cash book records only cash and bank transactions — receipts and payments of cash, and deposits/withdrawals/cheques through the bank. A credit transaction (where no cash or bank balance moves at the time, e.g. a credit sale or credit purchase) does not affect cash or bank immediately, so it is rec …