Two-column cash book
A two-column cash book typically has separate cash and bank columns on both receipt and payment sides. A cash receipt is entered on the debit side in the appropriate cash or bank column; a payment is entered on the credit side. A transfer from cash to bank appears in both columns on opposite sides as a contra entry, without creating income or expense.
Worked example
A cash deposit into bank is recorded as a contra entry between cash and bank columns.
Common mistake
Receipts and payments appear on opposite sides; the two columns normally mean cash and bank, not receipt and payment.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | F1 | Supporting | July 2027–August 2028 |
| ACCA | FA | Direct | September 2026–June 2027 |
| ACCA | K1 | Supporting | July 2027–August 2028 |
| FIA | FFA | Direct | September 2026–June 2027 |
Related terms
Also called: Cash and bank cash book