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three column cash book format

Triple Column Cash Book: In this Cash Book three amount columns are maintained on both the debit and credit sides—the first column is for discount, the second for cash and the third for bank. Opening balance: The opening balance of cash in hand and cash at the bank are recorded on the debit side in cash and bank column respectively. October, 2016. Given below is the format of a double column cash book (with the discount column): Triple Column Cash Book Format. Hints for recording in three/triple column cash book. Debit and Credit Rules; Bank reconciliation statement; Basic Accounting Terms; Practical Example : 1 st March 2014, 1. Balancing Cash Book: The cash book is balanced at the end of a given period by inserting the excess of the debit on the credit side as “by balance carried down” to make both sides agree.

A column is provided on either side of the cash book for this purpose. Under bank column of the cash book, cash transactions routed through bank are recorded. Three column cash book has cash, bank and discount column in both site of debit and credit. Cash Book is the one in which all the cash receipts and cash payments including the funds that are deposited in the bank and funds which are withdrawn from the bank are recorded according to the date of the transaction. A format of cash book with bank column is given below: Similar to simple cash book, cash transactions are recorded in the two column cash book. Three column cash book has cash, bank and discount column in both site of debit and credit.

Three column cash book is used in commercial and business organization for recording cash. Two column cash book or double column cash book definition with explanation and format with examples are disscused here. This is known as bank column. Three Column Cash Book Problems Pdf is downloadable format. The design of this Cash Book is like the single column Cash Book except that it has two amount columns on both the debit and credit sides. A separate column is allotted for each type of expenditure.The difference between the total of the debit items and that of the ‘total column’ on the credit represents the balance of the petty cash in hand. Petty Cash Book – Definition. Example # 3: From the following particulars write up the cash book of Rashid Khwaja Trading Co. for the month of October, 2016.

This means, on the debit side of Cash Book, that amount is written, in Bank Column as “To Cash” and on the credit side of cash book, the amount is written in Cash Column as “By Bank”. To get a clear picture of a 2-column cash book, click here. You can find it at the end of the article.

Definition, explanation, example, format and objectives of preparing a treble/three column cash book. Remember the following points while recording entries in a three column cash book: (1). Since the development of banking most firms, these days prefer to deal in cheques or other such bills of exchange.