JAIIB · AFM

MAINTENANCE OF CASH SUBSIDIARY BOOKS AND LEDGER PRE

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Accounting and Financial Management for Bankers — JAIIB.

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What is a Cash Book in the context of subsidiary books?

A Cash Book is a subsidiary book that records all cash receipts and cash payments, serving simultaneously as a journal and a ledger for cash transactions.

What is the primary purpose of maintaining subsidiary books in accounting?

To record specific types of transactions separately for efficiency.

How does a Double Column Cash Book differ from a Single Column Cash Book?

A Double Column Cash Book has two columns on each side — one for cash and one for bank transactions — whereas a Single Column Cash Book records only cash transactions.

What is the Cash Book also known as in banking terminology?

A book of original entry for all cash and bank transactions.

What is a Triple Column Cash Book?

A Triple Column Cash Book has three columns on each side — cash, bank, and discount — allowing simultaneous recording of cash, bank, and discount allowed or received.

Which column in a Single Column Cash Book records only cash transactions?

The cash column recording all receipts and payments in cash.

What is the purpose of the discount column in a Triple Column Cash Book?

The discount columns record cash discounts allowed to debtors (debit side) and discounts received from creditors (credit side); these columns are memorandum columns and are not balanced.

How is the opening balance shown in the Cash Book at the start of a new period?

As a debit balance brought down (b/d) on the debit side.

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