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The single column cash book is a cash book that is used to record only cash transactions of a business. It is very identical to a traditional cash account in which all cash receipts are recorded on left hand (debit) side and all cash payments are recorded on right hand (credit) side in a chronological order.
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It is another Cash Book which is maintained in large business concerns to reduce the burden of 'Main Cash Book', in which numerous transactions involving petty (small) amounts are recorded.
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Petty Cash Book is maintained to record small expenses such as postage, stationery, telegram. A separate column is allotted for each type of expenditure. The difference between the total of the debit items and that of the ‘total column’ on the credit represents the balance of the petty cash in hand.
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Subsidiary Books helps to save time and labor by recording a similar type of transactions in a separate book. These books are books of original entry. It also helps to maintain accounts and thus avoids the necessity of journal entries. In the normal track of business, a majority of transactions are either related to sales, purchases, or cash. This is avoided by sub-dividing the journal into a variety of subsidiary journals or books.
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These transactions have an immediate effect on the cash flow of the business. A credit transaction is a business transaction which although has monetary impact does not involve exchange of cash at the time of occurrence of the transaction but is settled in cash at a subsequent date.
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