Cash book: meaning, format, types & how to maintain one
A cash book is where every rupee in and out is recorded, in date order. Here is what it is, the main types, a simple format, and how to keep one correctly every day.
Short answer: A cash book is a dated record of all the money a business receives and pays. It works as both a journal and a ledger for cash, so the running balance is always current. In India the two sides are called Jama (money in) and Naam (money out).
What is a cash book?
A cash book is a financial record that logs all cash (and often bank) receipts and payments as they happen, in date order. It is special because it works as both a journal and a ledger for cash — so your running balance is always up to date without posting entries twice. In the Indian tradition the two sides are called Jama (money in) and Naam (money out).
Types of cash book
Single-column
Records only cash transactions — one amount column for receipts and one for payments. The simplest daily cash book.
Double-column
Adds a second column, usually bank (or discount), so cash and bank movements sit side by side.
Triple-column
Cash, bank and discount columns together — common where discounts are given or received regularly.
Petty cash book
A small book for minor, recurring expenses like tea, stationery or local transport.
Cash book format (simple)
Most daily cash books follow this shape — receipts on one side, payments on the other, with a running balance:
| Date | Particulars | Jama (in) | Naam (out) | Balance |
|---|---|---|---|---|
| 1 Apr | Opening balance | — | — | ₹10,000 |
| 1 Apr | Cash sale | ₹2,500 | — | ₹12,500 |
| 1 Apr | Paid supplier | — | ₹1,800 | ₹10,700 |
Closing balance = opening + total Jama − total Naam. New to these terms? Read Jama & Naam explained.
How to maintain a daily cash book
- Start with the opening balanceBegin the day with the cash you have in hand — this is your opening balance.
- Record every receipt (Jama)As money comes in — sales, repayments, advances — write it on the receipts/Jama side with the date, amount and source.
- Record every payment (Naam)As money goes out — purchases, rent, wages — write it on the payments/Naam side with the date, amount and reason.
- Keep entries dated and in orderEnter transactions as they happen so the book stays in date order and nothing is missed.
- Close the day and verifyClosing balance = opening + total receipts − total payments. Count the actual cash and make sure it matches.
Paper vs digital cash book
A paper cash book is simple but easy to lose, hard to total and impossible to search. A digital cash book keeps the same habit and adds automatic balances, instant reports, backups and reminders — with far less maths.
Frequently asked questions
What is a cash book in simple words?
A cash book is a dated record of all the money that comes into and goes out of a business. It works as both a journal and a ledger for cash, so you always know your balance.
What is the difference between a cash book and a ledger?
A cash book records only cash (and often bank) receipts and payments, and doubles as the cash ledger. A general ledger summarises every type of account — cash, parties, expenses and more.
What are the types of cash book?
The common types are single-column (cash only), double-column (cash + bank or cash + discount), triple-column (cash + bank + discount) and a petty cash book for small day-to-day expenses.
Is a digital cash book better than a paper one?
A digital cash book keeps the same simple habit but adds automatic balances, instant reports, backups, search and reminders — so there is less maths, no lost pages and nothing forgotten.
Keep your cash book without the maths
Daily Cash Entry turns the daily cash-book habit into automatic balances, live party ledgers and one-tap reports — on your phone or computer.