Cash Book Format: Daily Cash Book Example

The cash book is the one record most small businesses can't skip: every time money comes in or goes out, it gets a line. A good cash book format shows receipts on one side, payments on the other, and a balance you can check against the cash drawer and the bank statement. This guide covers the single, double and triple column formats, works through a daily cash book example with real balances, and shows a simpler running-balance version for Excel.

What is a cash book?

A cash book is a chronological record of cash and bank transactions. In double-entry terms it is unusual: it is both the book where transactions are first recorded and the ledger account for cash and bank, so its closing balance is the figure that goes on the balance sheet. If double-entry bookkeeping is new to you, the rule for the cash book is simple: money in is a debit, money out is a credit.

Tax authorities expect records of business income and expenses to be kept and supported. HMRC's guidance on records for the self-employed lists sales, expenses and bank statements among them, and the IRS explains what kind of records to keep, including cash register tapes, deposit information and receipts. This is general information, not tax advice.

Types of cash book format

Type	Columns on each side	Best for
Single column	Date, particulars, voucher no., ledger folio, amount (cash)	Very small, cash-only businesses
Double column	As above, with separate Cash and Bank amount columns	Most small businesses with a bank account
Triple column	Cash, Bank and Discount columns	Businesses that give or receive settlement discounts
Petty cash book	Total paid plus analysis columns (postage, travel, refreshments)	Small office expenses; see our petty cash log guide
Running-balance (columnar)	Date, description, in, out, balance in one table	Spreadsheets and mobile-friendly records

Double column cash book example

Here is a short daily cash book for a small supplier, 1 to 12 November 2026, with cash and bank columns. Opening balances: cash 500.00, bank 12,000.00.

Receipts (Debit side)

Date	Particulars	Voucher	LF	Cash	Bank
01-11	Balance b/d			500.00	12,000.00
03-11	Brightwell Cafe, payment for INV-1029	RCPT-221			600.00
05-11	Cash sale, INV-1043	RCPT-222		102.00
09-11	Cash withdrawn from bank	CHQ-1188	C	300.00
Total				902.00	12,600.00

Payments (Credit side)

Date	Particulars	Voucher	LF	Cash	Bank
04-11	Rent, November	PV-301			1,800.00
06-11	Stationery	PV-302		45.00
09-11	Cash withdrawn from bank	CHQ-1188	C		300.00
10-11	Courier charges	PV-303		60.00
12-11	Delta Steel, part payment	PV-304			4,500.00
12-11	Balance c/d			797.00	6,000.00
Total				902.00	12,600.00

Working out the closing balances:

• Cash: receipts 500 + 102 + 300 = 902.00; payments 45 + 60 = 105.00; balance 902 - 105 = 797.00
• Bank: receipts 12,000 + 600 = 12,600.00; payments 1,800 + 300 + 4,500 = 6,600.00; balance 12,600 - 6,600 = 6,000.00

The 9 November withdrawal is a contra entry, marked C: cash goes up by 300 and bank goes down by 300, with no effect on income or expenses. The balances c/d become the opening balances (b/d) for the next period. Each receipt should be supported by a cash receipt or bank record, and each payment by a voucher; our receipt voucher format shows the internal version.

Triple column cash book: the discount column

If you offer a settlement discount, the triple column format records it next to the payment. Suppose a customer owes 1,000.00 and takes a 2% early-payment discount: they pay 980.00 into the bank. On the receipts side you enter Bank 980.00 and Discount allowed 20.00. Together they clear the 1,000.00 from the customer's account. The discount column is a memorandum total that is posted to the discount allowed account at month end; it is not part of the cash or bank balance.

Running-balance cash book for Excel

The two-sided layout is traditional, but a single table is easier in a spreadsheet:

Date	Description	Ref	Cash in	Cash out	Cash balance
01-11	Opening balance				500.00
05-11	Cash sale INV-1043	RCPT-222	102.00		602.00
06-11	Stationery	PV-302		45.00	557.00
09-11	Withdrawn from bank	CHQ-1188	300.00		857.00
10-11	Courier	PV-303		60.00	797.00

In Excel, put the opening balance in F2 and use =F2+D3-E3 in F3, then fill down. Keep a matching sheet for the bank, or add bank in and out columns. A category column (sales, rent, supplies) lets you build a monthly summary with SUMIFS.

Daily cash closing for a shop

Shops and counters that take a lot of cash should close the cash book every evening with a denomination count. A simple closing sheet looks like this:

Line	Amount
Opening cash (float)	200.00
Add: cash sales per register or bills	1,345.50
Add: cash received from credit customers	150.00
Less: cash expenses paid (vouchers attached)	-72.50
Less: cash deposited to bank (contra)	-1,200.00
Expected closing cash	423.00
Counted cash (by denomination)	421.00
Difference (short)	-2.00

The expected figure is 200.00 + 1,345.50 + 150.00 - 72.50 - 1,200.00 = 423.00. The count is 2.00 short. Record the difference as "cash short" with the cashier's initials rather than quietly adjusting the sales figure. Small, occasional differences are normal; a pattern of shortages on the same shift is a signal to investigate. Card and digital wallet payments should be totalled separately and checked against the settlement report, because they reach the bank, not the drawer.

Writing good narrations

The particulars column is where most cash books fail. "Payment" or "misc" tells nobody anything six months later. A useful narration names the other party, what the money was for and the document number: "Delta Steel, part payment of DS-4410, PV-304" or "Cash sale, INV-1043". If you include those three elements every time, posting to the ledgers becomes mechanical, and anyone reviewing your books, including a tax inspector, can trace each line to its paperwork without asking you.

Cash book for freelancers and very small businesses

A sole trader who is paid mostly by bank transfer can keep a lighter cash book: one running-balance sheet for the business bank account, with columns for date, description, reference (invoice or receipt number), money in, money out, balance and category. Record each client payment against the invoice it settles, and each expense against a receipt. At month end, compare the balance with the bank statement. This simple record covers most of what you need for a tax return, and it is far easier to keep up than a two-sided ledger. Add a separate cash sheet only if you regularly handle notes and coins.

Cash book vs bank statement vs petty cash

These three records overlap but are not interchangeable:

• Bank statement: the bank's record of your account. It is evidence, not your book. It misses cheques not yet presented and includes bank charges you have not recorded yet.
• Cash book: your record of cash and bank movements, kept as they happen. The bank column is reconciled to the statement monthly.
• Petty cash book: a small fund for minor expenses, topped up from the main cash or bank to a fixed amount. Each top-up is a payment in the main cash book.

Keeping all three straight means you always know how much money you really have, which matters more than any profit figure when bills are due.

How to keep a daily cash book step by step

1. Start with a counted opening balance and the bank statement balance.
2. Record every transaction the same day, with a voucher or receipt number.
3. Use the right column. Card and transfer receipts go to bank, not cash.
4. Record contra entries on both sides.
5. Count cash daily and compare it with the cash balance.
6. Reconcile the bank column monthly using the steps in our bank reconciliation guide.
7. Post to the ledgers. Customer receipts go to customer accounts, supplier payments to supplier accounts, and expenses to expense accounts.

Common mistakes

• Recording bank receipts in the cash column, which makes the drawer look short.
• Missing contra entries, so cash withdrawn appears out of nowhere.
• Paying expenses from sales takings without recording both the sale and the expense.
• Mixing personal and business money. Record owner withdrawals as drawings.
• Cash balance going negative, a sure sign of a missing receipt or wrong entry.
• No supporting documents for payments, which causes problems at tax time. The sales register should back every sales receipt.

Every receipt in your cash book is easier to trace when it matches a numbered invoice. You can create those invoices free in our online invoice generator, with no account needed, and download each as a PDF to file with your cash book records.