One is used to record cash transactions, the second is used to record bank transactions and third is used to record discount received and paid. Three column cash book cash book with cash, discount. What is the difference between a single column cash book, a double column cash book and a three column cash book. A triple column cash book or three column cash book is one which consists of three separate columns on the debit side as well as on credit.
Double column cash book explanation, format, example. And when cash is paid to creditors, discount may be received from them. This video help you to solve all your practical problems of. The three column cash book is prepared having three column on each side i. Triplethree column cash book explanation, format, example. Post entries from triple three column cash book to appropriate accounts in general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledger. Tripal or three column cash book is a book with cash, bank and discount column. A three column cash book includes three amount columns on both sides, i. Cash book three column cash book practice you may also like to read. Define and explain a three column cash booktreble column cash book.
Three column cash book definition, format and examples play. The three column cash book also known as triple column cash book has three money columns on both debit and credit side one on each side for recording discount, cash and bank amounts. The three columns are cash, bank and discount allowed on the debit side on the receipts side while cash, bank and discount received are shown on the credit side i. We know, when cash is received from the debtors, discount may be allowed to them. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. The above format of double column cash book has six columns on both debit and credit sides. The purpose of cash and bank columns has been explained at the start of this article and the purpose of date, description, voucher number vn and posting reference pr columns has been explained in single column cash book article. This video help you to solve all your practical problems of your book as this video has a question which will. A three column cash book or treble column cash book is one in which there are three columns on each side debit and credit side. If a business keeps a bank account and receipts and payments are frequently made through bank account than it is useful to maintain a three column cash book rather than a single column cash book or a double column cash book.