Whatever may be the type of cash book, entries are passed according to the rules of Double entry. Following main points are to be considered while making entries in cash book:

Summary of Transactions to be recorded in Cash Book

No. Transaction Cash Dr. Bank Dr. Cash Cr. Bank Cr.
1 Started business with cash.       *
2 Started business with cash and bank balance.       *      *
3 Borrowed loan from State Bank of India.      *
4 Borrowed loan from a friend.       *      *
5 Purchased machinery for cash.       *
6 Purchased machinery on cash basis, paid by cheque.      *
7 Purchased goods, 50% payment made by cheque.      *
8 Sold goods for cash.       *
9 Sold goods, 50% payment received in cash.       *
10 Payment of an installment of SBI’s loan.       *      *
11 Deposited into Canara bank.(Contra Entry)      *      *
12 Withdrew from bank for office use. (Contra Entry)       *      *
13 Withdrew from bank for domestic use.      *
14 Payment of rent by cheque.      *
15 Repayment of friend's loan , by cheque.      *
16 Cash received from Mahesh for commission.       *
17 Received bank draft.      *
18 Collection of cash from debtors after discount.      *
19 Payment to creditors after discount.      *    *
20 Interest on bank deposit.      *
21 Expenses paid in advance (when these are paid).      *     *
22 Cheque deposited into bank.      *
23 Cheque deposited into bank, dishonoured.      *
24 Cheque issued to customer, later dishonoured.      *
25 Interest on bank deposit.      *
26 Bill receivable discounted with bank.      *
27 Bill receivable discounted later dishonoured.      *
28 Bank charges.      *
29 Cheques received sent to bank on the same day.      *
30 Cheques received sent to bank( next day).      *
31 Opening Cash balance.      *
32 Opening Bank balance.      *
33 Bank overdraft( Opening)      *
34 Closing cash balance      *
35 Closing bank balance      *
36 Closing bank Overdraft      *

Note:

(1) Cheque received should be debited to Cheques-in-hand. If this cheque is deposited into bank on the same day It should be debited to Bank . However if this cheque is deposited into bank the next day, following journal entry is to be passed:

Bank a/c Dr.

To Cheques-in-hand.