Page 2 - Microsoft Word - 241506010111

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(ii) Cash register with cash and bank columns (Double column cash book).

Format of Cash Register with Cash and Bank columns

Date Description Ref. No. Cash Bank
(Voucher/Bill)

Cash Cash Cash Cheque Cheque Bank

Received Paid Balance Received Paid Balance

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6. Credit Transactions:
Sometimes in business products are sold or bought on credit, which means that the
buyer/seller does not pay the money immediately, but will pay on a later date. These
transactions are termed as 'credit transactions'.
Credit transactions can take the following two forms:
(i) Buying on credit which means that the buyer will purchase a product now, but make
a payment on a later date.
(ii) Selling on credit which means that the seller will sell a product to a buyer, but
receive the amount at a later date.

Format for keeping Track of Credit Transactions

Sold on Credit Brought on Credit

Dat Amoun Descriptio Date Date Dat Amoun Descriptio Date Date
e t n Money Entry e t n Money Entry
Receiv Made Receive Mad
ed in d e in
Cash Cash
Book Book

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