The two column cash book records

A.

All receipts in cash only and payments by cheque

B.

Receipts and payments in cash only

C.

All receipts and payments both in cash and by cheque

D.

Receipts and payments by cheque only

Correct answer is C

The two column cash book is a combination of cash account and bank account in one book. It shows the total particulars of all the money received and paid by the firm either in cash or cheque.