Concept:The two-column cash book records both cash and bank transactions in one book.Explanation:A two-column cash book combines the cash account and the bank account together.One column is used for cash transactions and the other column is used for cheque or bank transactions.It records all money received and all money paid, whether the receipt or payment is made in cash or by cheque.Therefore, it does not record only cash or only cheque entries; it records both types together.Answer:C. all receipts and payments both in cash and by cheque.