There are four main types of cash books:

1. Single Column Cash Book

A single column cash book (also called a cash account) has only one amount column on each side. It records only physical cash transactions.

• Debit side: Records cash receipts (money coming in)
• Credit side: Records cash payments (money going out)
• The normal balance is a debit balance (cash at hand)

2. Two Column Cash Book

A two column cash book has two amount columns on each side: one for cash and one for bank. This is the most commonly used cash book because it records both cash and bank transactions in one book.

• Cash column: Records physical cash transactions
• Bank column: Records transactions done through cheques and bank transfers
• This book helps the business owner see both cash and bank balances at a glance

3. Three Column Cash Book

A three column cash book has three amount columns on each side: cash, bank, and discount columns.

• The discount column records cash discounts given to customers (discount allowed) or received from suppliers (discount received)
• It simplifies recording transactions involving discounts

4. Petty Cash Book

A petty cash book is used to record small cash payments that occur frequently, such as postage, transport, or stationery expenses. It is operated by a petty cashier using the imprest system.

• The imprest system means the petty cashier receives a fixed amount (petty cash float) and is reimbursed periodically for the amount spent
• The petty cash book has analysis columns for different expense categories

• All cash books apply the same double entry rules: debit for receipts, credit for payments
• The cash column and bank column work like separate accounts within one book
• A contra entry occurs when cash is transferred between cash and bank (such as depositing cash into the bank or withdrawing cash from the bank)
• The number of columns can increase based on business needs, such as having multiple bank accounts

The following example shows how to record transactions in a single column cash book.

Example: Monica started a second-hand clothes wholesale business on 1st July 2021 with capital of TZS 40,000,000 in cash.

Solution:

Answer: The balance of cash at 31st July 2021 is TZS 43,200,000 (debit balance).

In Tanzania, small shop owners at markets like Mwenge, Buguruni, or those running dukas in villages use cash books to track their daily sales and expenses. For example, a mama lishe selling mboga at a local market can use a simple single column cash book to record cash received from customers and cash paid for vegetables, transport, and plastic bags—helping her know how much profit she made each day.