A doubletwo column cash book to record cash as well as bank transactions. On april 1, 2017, hassan sajjad store cash book showed debit balances of cash rs. We know, when cash is received from the debtors, discount may be allowed to them. 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. A triple column cash book is usually maintained by large firms which make and receive payments in cash as well as by bank and which frequently receive and allow cash discounts. The cash book is very widely use in every business, it is important to understand that how it is maintained in business concerns. When cash is received it is entered on the debit or left hand side. Triple column cash book is prepared by adding one additional column with double cash book. 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. Treblethree column cash book definition, explanation, example. In regard to the discount columns of a triple column cash book, the following points are worth noting.
It means the cash book now will have three amount columns on each side, i. What is a cash book definition, explanation and types. The date of transaction is written in this column in two linesin the first line, the year and in the second line, the name of. 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. A cash book is a subsidiary to the general ledger in which all cash transactions during a period are recorded. Three column cash book definition, format and examples. Cash column, bank column and discount allowed column on the debit side and.
This video help you to solve all your practical problems of. There are four major types of cash book that companies usually maintain to account for their cash flows. And when cash is paid to creditors, discount may be received from them. Where to enter the dishonoured cheque in three column cash. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Discount columns in both side are not balanced only totaled. The cash book is recorded in chronological order, and the balance is updated and verified on a continuous basis. Similarly, when cash is paid out the same is recorded on the credit or right hand side of the cash book. Treblethree column cash book definition, explanation. A single column cash book to record only cash transactions. 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. Triplethree column cash book explanation, format, example. Cash book definition, example and format of cash book. A triplethree column cash book to record cash, bank and purchase discount and sales discount.
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. Three column cash book cash book with cash, discount. 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 credit side for recording cash. So triple column cash book is a cash book which has three columns on either side to record cash, bank and. 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. 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. 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 credit side for recording cash, bank and discount. Unlike cash and bank column which are balanced at the end of a particular period. The two discount columns discount allowed and discount received on the two sides are two different. Here is the video for triple column cash book with solution in simple way cash book. Tripal or three column cash book is a book with cash, bank and discount column. Cash book is a book of original entry in which transactions relating only to cash receipts and payments are recorded in detail.