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  1. Introduction to Booking Keeping and Accounting | Week 1
    9 Topics
    1 Quiz
  2. Introduction to Books of Account | Week 2
    5 Topics
    1 Quiz
  3. Subsidiary Books of Account I | Week 3
    4 Topics
    1 Quiz
  4. Subsidiary Books of Account II | Week 4
    4 Topics
    1 Quiz
  5. Principles of Double Entry Book Keeping | Week 5
    1 Topic
    1 Quiz
  6. Cash Book | Week 6
    6 Topics
    1 Quiz
  7. Petty Cash Book | Week 7
    1 Topic
    1 Quiz

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The two-column cash book is a combination of both cash account and bank account in one book. It shows the total particulars of all the money received and paid by the firm either by Cash or Cheque.

There will be separate columns for date, particulars, folio cash and bank on both sides of the account.

Contra Entries:

Contra Entries show that cash has been withdrawn from the office and deposited in the bank, or withdrawal of cash from the bank, for office use.

Therefore, contra entries affect both the cash and bank accounts.

Treatment of Contra Entries:

The following are ways of treating contra Entries:

(i) Cash paid into the Bank.
(ii) Cash withdrawn from the bank for office use or Business use.
(iii) Banked Cash.

NB: The double entry will be completed in the cash book when treating Contra Entries. The letter “C” must be recorded in the folio column to show the transfer of Contra entry transaction.


Jan 1:Cash paid into the bank amounted to N710
Jan 4:Withdrew Cash N800 from bank for office use
Jan 7:Bank/Cash N300
Jan 10:Withdrew N250 cash from the bank for business use


Screenshot 2022 07 21 at 22.59.38

Treatment of Drawings:

When the owner withdraws Cash for self or the owner’s use, it will be treated as drawings, not as Contra entry.


Jan 4:Drew Cheque N30 for self
Jan 12:Withdrew cheque for personal use N140


Screenshot 2022 07 21 at 23.04.18

Note: When the credit side (Payment) is greater than the debit side (Receipts) then there is an overdraft in the Cashbook.


Write up a Two-Column Cashbook from the following details for the month of January 1995.

January 1:Started business with capital in Cash N3,000
January 2:Paid rent by Cash N70
January 3:Received loan from Pablo N500
January 5:We paid Olu by Cheque N165
January 6:We paid general expenses in cash N300
January 9:Withdrew N1,000 from cash till 
and paid it into the bank account
January 10:Cash Sales paid directly into the bank N3,000
January 12:Banked Cash N900
January 14:Cash Purchases N500
January 16:Bought goods by cheque N130
January 19:Commission received by cheque N501
January 21:Bought Motor Van by Cheque N60
January 22:Cash drawings by the proprietor N21
January 24:We paid Biodun for goods bought N250
(N150 in cash, N100 in cheque)
January 26:Wages paid in cash = N35
January 27:Bought stationery paying by Cash N75
January 28:Withdrew N105 from Bank for private use
January 30:Rent Received by Cheque N45
January 31:Cash Sales N1,000


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