There are three types of cash books:
- Single Column Cash Book: Records only cash transactions, receipts on the debit side and payments on the credit side. It shows cash in hand and is used by small firms.
- Double Column Cash Book: Contains cash and discount columns on both sides. It records cash and discounts allowed or received, giving more detail than a single-column book.
- Triple Column Cash Book: Has cash, bank, and discount columns. It records both cash and bank transactions, including contra entries, saving time and effort in posting.
