Cash Book

We are listening many times terms like “cash” and “money” in any business and shops. because all trading transactions are on cash flow and it is the base of any business with format of in bank or in hand. So that, a successful business should keep its cash transactions very clear with true format in a cash book for decision times to get more profits. so that, understanding cash book format is a most for cash flow reports.

Cash flow in businesses

Parts of Cash book

All accounting transactions should be recorded and keep in a suitable section in ledger book, there many types of transactions between products, customers and suppliers. so that, relations of these transaction will be by cash or credits. Transactions of items of products and services will be kept in sales day book and purchase book and therefore all money transactions will keep in cash book. so any cash payment and cash receipt will record in cash book.

Cash book is a separate accounting book that includes columns as:

  • Date
  • Accounts
  • Description
  • Debit
  • Credit

Any record with debit amount means cash amount will store in cash account and reverse.

Example of Cash book

  • Report of cash payment in a purchase voucher
    • As you see here, 5460 USD has been paid for a purchase and this amount of cash has been reduced from cash account (Cash in Hand)
    • Sample of cash receipt voucher in iGreen accounting

Sample of cash receipt voucher in iGreen

Cash Book Formats

Typically, we can find two format for a cash book

  1. Official Format

  2. Shop Format

Official format of Cash Book

Official format of Cash Book


In official format there are columns Date, Description, Debit and Credit but in shop format there are columns: Date, Description, Income and Expense.

Shop format of Cash Book

Shop format of cash book

Debit and Credit are used in accounting concepts and professional format but these terms are hard to understand for normal user so in shop format term Income will used for Debit and Expense Will used for Credit.

Types of Cash Book

  • Two Column Cash Book
    • This type, has two columns as Debit (Income) and Credit(Expense) for Only Cash account, therefore it mentions to All money in hand and bank
  • Triple Column Cash Book
    • This type, has three columns as Debit, Credit, and a column for cash type ( cash in hand or cash in bank). Benefit of this type of cash book is to recognize where is cash? in hand or in bank and we can have more clear reports and statement of cash flow
Cash Book in Triple Column

Cash Book in Triple Column

Petty Cash Book

In general, petty cash is one of big volume account in any business. Actually of much quantity of charge payments for daily charges of offices or.., therefore in the most company, petty cash transactions keep in separate book as name petty cash book.

How to Use Cash Book

There are too much cash transactions everyday. We recommend to enter vouchers of cash payments and receipt at the end of day.

For this reason, Don’t leave them to do in the next day. else delayed vouchers will grow to huge quantity and it will make more mistakes in big time working.

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