Two Column Cash Book

Two Column Cash Book #accountingbasics #accountingtutorials

This video provides a detailed explanation of the Two Column Cash Book, also known as the Double Column Cash Book, in accounting. It contrasts it with the single-column cash book and delves into the roles and functions of a bank, different types of bank accounts, and various types of financial transactions and their accounting entries.

Here's a summary of the key topics:

Introduction to Two Column Cash Book (0:21-1:04)
Format of Two Column Cash Book (1:10-2:10)
Understanding Banks and their Functions (2:13-5:55)
Covers main functions like accepting deposits (2:51), allowing withdrawals (3:04), facilitating payments by cheques (3:20), providing loans (3:41), and offering cash credit (3:46).
Introduces the Overdraft Facility (4:10)
Recording Transactions in a Two Column Cash Book (6:27-19:12):
Opening Balance (6:31)
A debit balance signifies a positive balance (6:51)
A credit balance indicates a negative balance, which is essentially an overdraft or a loan from the bank (7:01-8:50).
Checks Received (9:18)
Dishonored Cheques (11:04)
Checks Issued (11:55)
Cash Withdrawn for Personal Use (Drawings) (13:03)
Bank Advices and Statements (13:43)
Direct deposits by customers (13:48)
Interest allowed by the bank (14:13)
Interest charged on overdraft (14:39)
Bank charges (15:05)
Collection of dividends/interest on investments by the bank (15:43)
Payments made by the bank on instructions (e.g., insurance premium) (16:14)
Transfer of amounts between different accounts (17:25)
Contra Entries (19:16-21:20)
Provides examples like depositing cash into the bank (20:07)
Withdrawing cash from the bank (20:29).
Balancing the Cash Book (21:22-22:18)
Types of Bank Accounts (22:25-25:45):
Current Account (22:28)
Savings Account (23:00)
Fixed Deposit (FD) Account (23:28)
One-time deposit only (24:41).
Recurring Deposit (RD) Account (25:00)