The triple column cash book also referred to as three column cash book is the most exhaustive form of cash book which has three money columns on both receipt dr and payment cr sides to record transactions involving cash, bank and discounts. She offers a cash discount of 3% to her debtors for payment within 15 days. The three column cash book is simply the traditional two column cash book with the addition of an extra column at each side. The three column cashbook is sometimes referred to as the triple cash book, treble cash book or the 3 column cash book.
A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Also known as a two column cash book, a double column cash book is the one which has a bank column in addition to the regular cash column. This cashbook can be adjusted to suit your financial yearend and is. Entries in the cash book are then posted into the general. A three column cash book has an extra column for each side in addition to the two columns for bank and cash. Two column cash book or double column cash book definition with explanation and format with examples are disscused here. Sohara puts her cash receipts in a till and enters them into her three column cash book each week. As explained in the introduction, there are 2 types of cash book. Msomi maktaba notes za o level na a level all subjects physics chemistry biology mathematics literature civics general study geography angiculture history kiswahili commerce book keeping accounting computer economics form one form two form three form four form five and form five study notes.
Cash book also serves the purpose of book of original entry as well as ledger. Required a state why the bank statement balance is on the opposite side to that shown in the cash book. This video help you to solve all your practical problems of. The double column cash book also known as two column cash book has two money columns on both debit and credit sides one to record cash transactions and one to record bank transactions. Then, we shall learn how various transactions with a bank are recorded in the three. The specimen performa of a simple cash book is given as follows. Aug, 2014 triple column cash book a cash book with discount and bank column is triple column cashbook. The discount column in the cash book is only a memorandum column and does not stand for discount account. Here is the video for triple column cash book with solution in simple way cash book tutorial, hope this will help you to get the subject. The three column cash book has three money columns on both debit and credit side one on each side for recording discount, cash and bank.
Mar 23, 2018 double column cashbook with cash and discount column example. But in double column cash book, we have two accounts, cash ac and the bank ac, so it is possible to have both a debit entry and a credit entry at the same time. In other words, we can say that if we add a bank column to both sides of a single column cash book, it would become a double column cash book. Features of the cash book as both a ledger account and book of original entry 5. It must be remembered that the discount column in treble column cash book is not an account. Three column cash book questions and answers three column cash book is a book where company maintain the records of cash and bank transactions. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. Cash book with discount and cash column transaction. 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. Cash book three column cash book practice book template, cash.
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. Sep 23, 2018 tripal or three column cash book is a book with cash, bank and discount column. It is cost and time effective as no separate bank account is required to be maintained. What are the main advantages of maintaining cash book. Thus, these type of businesses maintains cash book with discounts. For recording transactions in the simple cash book, the foremost step is to understand. Three column cash book definition, format and examples. Aug 17, 2016 three column cash book practice example the following problem will help you to understand that how to maintain record in three column cash book. Explain the advantages of keeping cash in the bank 3. The cash book is 100% free for you to download and use forever, and it is fully customizable so you can change anything in it. Three column cash book definition, format and examples play. Cash book three column cash book practice you may also like to read.
Threecolumn cash books and discounts igcse accounts. Enter the following transactions in a cash book with discount and cash columns. Just like the other type of books, it records receipts from cash and bank on the left side and payments on the right side. This extra column is used to record cash discounts. A triple column cash book is usually maintained by large firms which make. The cash and bank columns of triple column cash book are used as accounts and are periodically totaled and balanced just like in case of a double column cash. It may also be noted that when discount column is added with both sides of double column cash book it becomes a treble or three column cash book. The difference between these two is that the 3 column cash book contains an additional amount column on each side. Definition and explanation of cash book with examples.
If you can not find an all set made excel design template, then utilize the search box to type in what you are searching for and i am specific it will appear. Dec 17, 2019 the other side of the three column cash ledger book would be headed credit and show an identical format with the three columns representing the monetary amounts of the cash payment, bank payment, and discounts received. 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. This excel cash book is suitable for any small business that wants an easy bookkeeping method a simple way to track your income and expenses. Problems on three column cash book cheque deposit account. This format of cash book is useful when either there is no bank transaction or bank transactions do not occur frequently. Here we detail about the three types of cash book, i. Double column cash book explanation, format, example. Treblethree column cash book definition, explanation. In this cash book three amount columns are maintained on both the debit and credit sidesthe first column is for discount, the second for cash and the third for bank. Two column cash book double column cash book definition. Three column cash book problems and solutions accountancy. Book keeping form two three column cash book msomi maktaba. Mar 02, 2020 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.
Interpret transactions and details in the cash book 12 g 1. This third column is used for recording the cash discounts allowed to debtors and the cash discounts received from creditors. Double column cash book explanation, format and examples. Double column cash book explained with example tutorstips. Tripal or three column cash book is a book with cash, bank and discount column. Oct 04, 2019 double column cash book columns have the following advantages in addition to those of single cash column book it is more convenient as cash and bank accounts are kept side by side at one place. In such cases, the cash book with bank column in addition to the cash and discount columns is found convenient. Simple cash book contains only one amount column on each side debit and credit for recording cash receipts and cash payments. Frauds involving cash are likely to be minimized and where committed are likely to be detected at an early stage. Cash and bank transactions can be recorded in cash book. In business firm most of the payments are received and paid by cheque. Similar to the simple cash book, it also consists of a debit and credit side along with an extra column for tax. It is possible to find out daily cash and bank balance. Triplethree column cash book explanation, format, example.
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