Accountancy · Ch 7 — Subsidiary Books – II
Double Column Cash Book (Cash and Discount)
Double Column Cash Book (Cash and Discount)
A Double Column Cash Book adds one more column, alongside the Cash column, on both sides — most commonly a Discount column, to record the cash discount allowed to customers (debit side, alongside cash received from them) and the cash discount received from suppliers (credit side, alongside cash paid to them).
| Dr | Date | Particulars | L.F. | Discount Allowed (₹) | Cash (₹) | Cr | Date | Particulars | L.F. | Discount Received (₹) | Cash (₹) |
|---|
The Discount columns are only memorandum columns — they are not part of the double-entry within the Cash Book itself (a discount is not cash, so it cannot be totalled together with the Cash column). Instead, at the end of the period:
- The total of the Discount Allowed column (debit side) is posted to the debit of Discount Allowed Account (an expense, eventually reducing net profit).
- The total of the Discount Received column (credit side) is posted to the credit of Discount Received Account (a gain, eventually increasing net profit).
The Cash column continues to behave exactly as in the Single Column Cash Book — always a debit or nil balance, directly representing cash-in-hand. …
A Cash Book with a Discount column alongside the Cash column, recording Discount Allowed (debit side) and Discount Received (credit side) as memorandum figures posted once, at period end, to the …
Nominal accounts to which the period totals of the Discount columns are posted — Discount Allowed (an expense) to the debit, Discount Receive …