Key points from ISA 200 (Overall objective of independent auditor and the conduct of an audit in accordance with ISAs

Double column cash book – meaning

Double columns cash book is the cash book that has two amount columns one for cash and another for discounts on each side. It is customary in business to allow discounts when payment is received from the customer promptly and before the due date. It is also customary for business to get a discount when the payment is made to creditors before due date. All cash receipts and discounts allowed being recorded on the debit side and all payment and discount received are recorded on the credit side of the cash book.



The posting of cash column is done in the same manner as dome in single column cash book. Entries from discount columns of the debit side of cash book are posted on the credit side of every individual debtor’s account to whom the business has allowed the discount. The total of debit side of the discount column is shown on the debit side of the ‘discount allowed account’ by writing ‘to sundries’ in a particular column. Entries from the discount column on the credit side of cash book are posted on the debit side of every individual creditor’s account by whom the discount is allowed to the business. The total of the credit side of the discount column is shown on the credit side of ‘discount received account’ by writing ‘ by sundries’ in the particular column.

The cash column of the double column cash book is balanced exactly in the same manner as in the case of the single column cash book. But, the discounts columns are not balanced but merely totaled. These totals are posted to the respective discount allowed account and discount received account.

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