There are three types of cash books
1.Simple Column Cash Book: For recording cash transaction only.
This is the simplest form of Cash Book and is used in businesses where payments are made and received mostly in cash and where usually no cash discount is received or given. However, if there are any discount or cheque transactions, it is recorded in a separate account in the ledger. The ruling of a one-column Cash Book is like an ordinary cash account.
2.Double Column Cash Book: For recording and cash discount transaction.
This type of cash book has two columns, viz., cash column and discount column. Usually, the cash discount is allowed or received when payment is made. So, it is necessary to record this fact at the same place where the cash transaction is recorded. This type is similar to Simple Cash Book, except that one additional column on each side is provided for recording cash discount. As discount is a nominal account, discount allowed being a loss is shown on the debit side and discount received being a gain is shown on the credit side.
3.Triple Column Cash Book: For recording cash, bank and discount transaction.
These days, it is difficult to carry on any business without having dealings with the bank. Normally, the bulk of its funds is kept by the business at a bank in a current account where frequent withdrawals and deposits are permitted. Bank transactions are numerous than cash transactions. Therefore it is appropriate as well as convenient that cash book should have on the additional column on each side to record money‟s deposited at the bank and the payment out of the bank.
