Cash Book in Class 11 Accountancy: Single Column, Double Column, and Petty Cash Explained

Cash Book is one of the first Class 11 Accountancy topics where students realise that accounting is not only about rules. It is also about organising information in a way that makes business transactions easy to read.

At first, the topic looks simple. Cash received goes on one side. Cash paid goes on the other side. Then the chapter slowly adds bank transactions, contra entries, discount columns, petty cash, vouchers, and balancing. That is when many students start mixing up the format.

The good news is that Cash Book becomes much easier when you understand its purpose.

A cash book is used to record cash and bank transactions in order. It works as a book of original entry because transactions are first recorded in it. It also works like a ledger account because it gives the balance of cash or bank directly.

If you learn the reason behind each column, you will not have to memorise every format blindly.

Why Cash Book Is Maintained

Every business deals with money. It may receive cash from sales, pay rent, deposit money into the bank, withdraw money from the bank, pay wages, receive cheques, or make small daily payments.

If all these transactions were recorded only in the journal, the journal would become crowded very quickly. It would also become difficult to check the cash balance at any point.

This is why a separate cash book is maintained.

The cash book helps a business:

• record cash receipts and cash payments
• record bank deposits and bank payments
• know the cash balance quickly
• know the bank balance quickly
• reduce unnecessary journal entries
• keep money-related records in one place
• make checking and verification easier

This is an important point. The cash book has a special position because it behaves like both a journal and a ledger.

The Basic Rule: Receipts on the Debit Side, Payments on the Credit Side

Before learning the types of cash book, remember the basic layout.

The left side is the debit side. It records receipts.

The right side is the credit side. It records payments.

In simple words:

Side	What It Records	Example
Debit side	Money coming in	Cash sales, cash received from a debtor
Credit side	Money going out	Rent paid, wages paid, goods purchased for cash

This matches the rule for assets. Cash is an asset. When cash increases, it is debited. When cash decreases, it is credited.

This question alone can prevent many wrong-side mistakes.

Single Column Cash Book

A single column cash book is the simplest form of cash book.

It has only one amount column on each side. It records only cash transactions. There is no bank column and no discount column.

Use this format when the question deals only with cash receipts and cash payments.

For example:

• started business with cash
• sold goods for cash
• paid rent in cash
• purchased stationery in cash
• received cash from a customer
• paid cash to a supplier

The debit side records cash received. The credit side records cash paid.

Students often make the mistake of thinking about the name of the account first. In cash book, start with the cash movement first.

How to Read a Single Column Cash Book Format

A simple cash book usually has these columns on both sides:

Column	Meaning
Date	The date of the transaction
Particulars	The name of the other account involved
L.F.	Ledger folio, used for posting reference
Amount	The cash amount received or paid

On the debit side, the particulars column shows where the cash came from.

On the credit side, the particulars column shows where the cash went.

For example, if cash is received from Mohan, the debit side may show “Mohan”. If rent is paid, the credit side may show “Rent”.

Do not panic if you do not fill every reference column during practice. First focus on date, side, particulars, and amount.

Balancing a Single Column Cash Book

At the end of the period, the cash book is balanced.

Since a business cannot pay more cash than it has, the debit side is usually higher than the credit side. The difference is the closing cash balance.

The balance is written as “Balance c/d” on the credit side to make both sides equal. Then it is brought down as “Balance b/d” on the debit side for the next period.

Here is the logic:

Cash received - Cash paid = Cash balance

If cash received is Rs. 50,000 and cash paid is Rs. 32,000, the balance is Rs. 18,000.

This is different from a bank account, where overdraft is possible.

Double Column Cash Book

A double column cash book has two amount columns on each side.

In Class 11, students usually meet two common forms:

• cash and bank columns
• cash and discount columns

The cash and bank column format is especially important because many business transactions happen through banks.

In a cash and bank column cash book, the debit side has a cash column and a bank column. The credit side also has a cash column and a bank column.

This allows one book to record both:

• cash in hand
• bank balance

This makes the format much less intimidating.

Cash Column and Bank Column: The Main Difference

The cash column records physical cash received and paid.

The bank column records money deposited into or paid from the bank account.

Examples for the cash column:

• cash sales
• cash paid for stationery
• cash received from a debtor
• cash paid for wages

Examples for the bank column:

• cheque received and deposited
• cheque issued to a supplier
• rent paid by cheque
• cash deposited into bank
• cash withdrawn from bank

The same transaction should not be placed randomly in both columns. You must read the wording carefully.

Wording in Question	Column Usually Affected
Paid cash	Cash column
Received cash	Cash column
Paid by cheque	Bank column
Received cheque and deposited into bank	Bank column
Deposited cash into bank	Cash and bank columns
Withdrew cash from bank	Cash and bank columns

The last two are special because they involve movement between cash and bank inside the same business.

Contra Entries

Contra entries are one of the most important parts of the double column cash book.

A contra entry happens when both cash and bank are involved in the same transaction.

The most common examples are:

• cash deposited into bank
• cash withdrawn from bank for office use

In these cases, money is not going out of the business. It is only moving from one form to another.

If cash is deposited into the bank:

• cash in hand decreases
• bank balance increases

So the entry affects the credit side cash column and the debit side bank column.

If cash is withdrawn from the bank for office use:

• bank balance decreases
• cash in hand increases

So the entry affects the credit side bank column and the debit side cash column.

Contra entries are usually marked with “C” in the L.F. column because no separate ledger posting is needed for that movement between cash and bank.

Why Students Get Contra Entries Wrong

Most mistakes happen because students think every credit side entry means an expense.

That is not true.

The credit side of the cash book means cash or bank is decreasing. It does not always mean the business has lost money.

When cash is deposited into bank, the cash column is credited because cash in hand decreases. But the bank column is debited because bank balance increases.

The business has not become poorer. The money has only shifted.

Once this is clear, contra entries feel logical.

Double Column Cash Book With Discount

Some double column cash books include cash and discount columns.

Discount may be allowed to customers when they pay early. Discount may also be received from suppliers when the business pays early.

The important point is that the discount column is not balanced like cash or bank.

Discount allowed is an expense or loss for the business. It appears on the debit side.

Discount received is a gain for the business. It appears on the credit side.

The discount columns are totalled and posted to the relevant discount accounts.

Item	Side in Cash Book	Meaning
Discount allowed	Debit side	Given to customer
Discount received	Credit side	Received from supplier

This helps you read the transaction without guessing.

Petty Cash Book

A petty cash book is used for small, regular expenses.

These may include:

• postage
• stationery
• tea and refreshments
• conveyance
• small repairs
• courier charges
• cleaning items
• minor office expenses

If the main cashier recorded every small payment in the main cash book, the main cash book would become too crowded. So a petty cashier is often given a small amount to handle these expenses.

The petty cash book records those small payments separately.

This is why petty cash book is useful for both convenience and discipline.

The Imprest System of Petty Cash

Many petty cash books follow the imprest system.

Under this system, the petty cashier receives a fixed amount at the beginning of a period. This fixed amount is called the imprest amount.

During the period, the petty cashier makes small payments and records them.

At the end of the period, the main cashier reimburses the exact amount spent, so the petty cashier again has the original fixed amount.

For example:

Step	Amount
Imprest amount given	Rs. 5,000
Petty expenses during the week	Rs. 3,200
Cash left with petty cashier	Rs. 1,800
Reimbursement by main cashier	Rs. 3,200
Petty cash restored to	Rs. 5,000

This system helps control small payments because the petty cashier must show how the money was spent before receiving reimbursement.

Analytical Petty Cash Book

An analytical petty cash book does more than record total petty expenses. It divides expenses into separate columns.

For example:

Date	Particulars	Total Paid	Postage	Stationery	Conveyance	Miscellaneous
May 5	Bought envelopes	200	200
May 8	Bus fare	150			150
May 10	Pens and files	300		300

This helps the business know not only how much was spent, but also where it was spent.

That makes later posting and checking much easier.

How to Decide Which Cash Book Format to Use

Students sometimes lose marks because they choose the wrong format before solving.

Use the question wording as your guide.

If the Question Mentions	Use This Format
Only cash receipts and cash payments	Single column cash book
Cash and bank transactions	Cash and bank column cash book
Cash transactions with discount	Cash and discount column cash book
Small expenses handled separately	Petty cash book

If the question gives cheque transactions, bank deposits, withdrawals, or payments by cheque, you should expect a bank column.

If the question gives many small expenses such as postage, stationery, and conveyance, you may need a petty cash book.

This small reading habit saves time and prevents format mistakes.

Common Cash Book Mistakes Class 11 Students Make

The cash book chapter becomes messy when students rush.

Here are the mistakes to avoid.

Mistake	Better Habit
Putting payments on the debit side	Ask whether money is coming in or going out
Treating bank deposit as an expense	Remember it is a contra entry
Balancing discount columns	Only total discount columns
Forgetting “C” for contra entries	Mark internal cash-bank transfers clearly
Mixing cash and bank columns	Read whether payment is by cash or cheque
Ignoring petty cash analysis columns	Classify small expenses carefully
Copying format without understanding it	Learn the purpose of each column

If the format is wrong, even correct amounts may not receive full credit.

A Simple Method to Practise Cash Book Questions

Do not start with long questions immediately.

First practise in stages.

1. Prepare a single column cash book with 8 to 10 simple cash transactions.
2. Balance it properly.
3. Prepare a cash and bank column cash book with simple cheque transactions.
4. Add only two contra entries and understand their placement.
5. Practise a discount column question separately.
6. Prepare one petty cash book using the imprest system.
7. Finally, solve a mixed question under exam timing.

This order helps your brain build the format slowly.

Students who improve in Accountancy usually do not just solve more. They notice what went wrong and fix the pattern.

How Parents Can Help Without Teaching the Chapter

Parents do not need to know every cash book format to support a Class 11 student.

They can help by checking study habits.

Look for these signs:

• the child draws the format neatly before solving
• the child reads the transaction wording slowly
• the child can explain what a contra entry means
• the child practises both cash and bank column questions
• the child corrects wrong-side mistakes
• the child balances the cash book instead of leaving it incomplete

If the child keeps saying, “I understand it, but I cannot solve it,” that usually means the concept is familiar but the format practice is weak.

This is especially important early in Class 11 because cash book connects to later topics like ledger posting, bank reconciliation, and final accounts.

Frequently Asked Questions

What is a cash book in Class 11 Accountancy?

A cash book is a book used to record cash and bank transactions in order. It records receipts on the debit side and payments on the credit side. It is both a book of original entry and a ledger-like record for cash or bank balance.

What is the difference between single column and double column cash book?

A single column cash book has one amount column on each side and records only cash transactions. A double column cash book has two amount columns on each side, such as cash and bank columns or cash and discount columns.

What is a contra entry in cash book?

A contra entry records a transaction that affects both cash and bank columns, such as cash deposited into bank or cash withdrawn from bank. It is marked with “C” because the money only moves within the business.

Can cash book show a credit balance?

The cash column normally cannot show a credit balance because physical cash cannot be negative. The bank column can show a credit balance if there is an overdraft.

Why is petty cash book prepared?

Petty cash book is prepared to record small, regular expenses separately, such as postage, stationery, conveyance, and minor office costs. It keeps the main cash book cleaner and helps control small payments.

What is the imprest system?

The imprest system is a petty cash system where the petty cashier receives a fixed amount at the start of a period. At the end, the amount spent is reimbursed so the petty cash balance returns to the fixed amount.

How should I practise cash book for exams?

Start with single column questions, then move to cash and bank columns, contra entries, discount columns, and petty cash book. Practise by writing the full format yourself, not only by reading solved examples.