Single column cash book explanation, format and example. A cash book is a financial journal that contains all cash receipts and disbursements. In a triple column cash book, there are three columns of amount namely, cash, bank and discount. The importance of a cash book in accounting bizfluent. 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. Assets and liabilities are the two sides of the cash book. Discount allowed and discount received columns represent two different accounts. Triple column cash bookbank column cash bookdiscount column. The entries relating to checks issued, checks received, purchases discount, and sales.
This cashbook can be adjusted to suit your financial yearend and is. Three column cash book questions and answers three column cash book is a book where company maintain the records of cash and bank transactions. Differences between single column cash book and double column. The columns of the triple column cash book are explained below. 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. These allowances are made for prompt settlement of accounts. All cash receipts, deposits into book and discount allowed are recorded on debit side and all cash payments, withdrawals from bank and discount received are recorded on the credit side. The three column cashbook is sometimes referred to as the triple cash book, treble cash book or the 3 column cash book.
Triplethree column cash book explanation, format, example. Generally, it may not be possible to conduct business only on cash transactions. Cash discount is recorded, when payments are made in cash or by check. When cash is drawn, cash comes in and is debited in the cash book in cash column as to bank and credit in cash book in bank column as to cash. The triple column cash book shows all of the above plus information about purchase or sales discounts. 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. These include money coming in corporate vaults from sources as varied as customers, bank savings accounts and vendors through rebate and discount programs, for example. Only cash receipts and cash payments are recorded in the cash book. This type of cash book is known as cash book with discount and cash column or two columns cash book. Cheque that is returned unpaid by the bank on which it was drawn due to lack of sufficient funds is called dishonoured cheque\.
The discount column on the debit side of the cash book will record discounts. Accounting mcq questions and solutions with explanations. Two column cash book or double column cash book definition with explanation and format with examples are disscused here. Cash discount is recorded, when payments are made in cash or. Cash bok with discount and bank column or three column. If there is any discount allowed it is entered in the discount column on. A triple column cash book is usually maintained by large firms which make and receive payments in. Accounting mcq is important for exams like ca, cs, cma, cpa, cfa, upsc, net, banking and other accounts department exam. While in the debit side, discount allowed is recorded along with the receipts, either in cash or through cheque. A double column cash book consists of cash and bank column. Sohara puts her cash receipts in a till and enters them into her threecolumn cash book each week. Some organizations also maintain a petty cash book which records the petty or small cash expenses of. Cash ac is removed from the ledger and instead of it the single column cash book is kept to record cash transactions.
Single column cash book definition, format and examples. Three column cash book cash book with cash, discount. Sohara puts her cash receipts in a till and enters them into her three column cash book each week. For recording small value transactions, but it i a subsidiary book only. Three column cash book definition, format and examples. Double column cash book or two column cash book shows two amount column in the debit side and same column in credit site. The cash book records a all cash receipts b all cash. Thus, these type of businesses maintains cash book with. Here is the video for triple column cash book with solution in simple way. Stay organized with accounting and record journals staples.
A two column cash back records discount allowed and discount. Accounting mcq questions and answers with easy and logical explanations. In triple column cash book, the balance of bank overdraft brought forward will appear in 6. 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. 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.
Cash book single column cash book or simple cash book in very simple method. The three column cash book is simply the traditional two column cash book with the addition of an extra column at each side. The discount column is not balanced but only totaled. Which of the following is recorded as contra entry. 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. As stated earlier, a single column cash book records only cash related transactions. The single column cash book has only one money column on both debit and credit sides titled as amount which is periodically totaled and balanced like a taccount. She offers a cash discount of 3% to her debtors for payment within 15 days.
Three column cash book definition, format and examples play. 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. In the same way no bank ac is opened in ledger for recording bank transactions, rather. A three column cash book includes three amount columns on both sides.
Enter the following transactions in a cash book with discount and cash columns. Difference between cash book and passbook with comparison. Generally, each business will use anyone of the above types of cash book along with petty cashbook which is maintained on memorandum basis. Single column cash booksimple cash bookwith solved. From the following particulars write up a three column cash book of mr. A two column cash back records discount allowed and. Discount allowed is recorded in the discount column on the debit side of the triple column cash book and posted individually to the credit side of the debtors accounts to which they relate. Enter the following transactions in the cash book with cash, bank and discount column for a r khan and co. In many concerns it is customary for the trader to allow or to receive small allowance off or against the dues.
Commerce provides you all type of quantitative and competitive aptitude mcq questions with easy and logical explanations. A double column cash book or two column cash book is one which consists of two separate columns on the debit side as well as credit side for recording cash and discount. Businessmen sell their goods on credit, in order to increase the. The dishonour of cheques is recorded on the payment side or credit. Entry for discount allowed earlier should be nullified by way of the following entry in the journal proper. 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. Discount allowed and discount received are recorded in the discount column. Treblethree column cash book definition, explanation. Discount allowed column is provided on debit side and discount received column is drawn on credit. Differences between single column cash book and double. Where cash discount is a regular feature, a triple. Record the following transactions in a single column cash book and post into ledger. Cash book the cash book is a ledger in the sense that it is designed in the form of a cash account and records cash receipts on the debit side and cash payments on the credit side. Discount columns in both side are not balanced only totaled.
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. Accounting sub journals and cash book ezinearticles. Also called a three column cash book, a triple column cash book has cash, bank and discount allowed on the receipt on the left side and cash, bank and discount received on the payments are on the right side of the cash book. Difference between cash book and cash account with. When a trader keeps a bank account it becomes necessary to record the. A cash book is a document in which corporate accountants and, more principally, bookkeepers and junior accountants record all cash transactions. Nov 01, 2014 cash book single column cash book or simple cash book in very simple method. Do practice cash book mcqs for conceptual and theoretical understanding. Credit transactions are not recorded in the cash book. The balance of cash column is the closing cash in hand, the balance of bank column is the cash at bank or bank overdraft. The three column cash book also known as triple column cash book. The transactions which affect cash and bank account at a time are called contra entries and are recorded in both sides of triple column cash book. Contra entries ledger folio lf ke column mai record kiye jathe. Two column cash book double column cash book definition.
Threecolumn cash books and cash discounts springerlink. Discount allowed is the concession given by the businessman to its customers or debtors e. It is not necessary to record dishonour of cheques. Recording transaction in three columnar cash book with. Sometimes cash book is provided with an additional column of discount on each side. A cash book with discount, cash and bank column is called.
Cash discount received by the trader from its supplier is known as discount received. The total of discount column on debit side of cash book represents the total. 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. Some businesses have to provide discounts during their cash transactions. Two column cash book a two column cash back records discount allowed and discount received along with the cash payments and cash receipts. Following are some key point regarding discount columns of triple column cash book. It means the cash book now will have three amount columns on each side, i. Triple column cash book explained with example tutorstips.
Cash bok with discount and bank column or three column cash. The business can use the additional column to operate as a discounts journal and record details of discounts allowed on the cash receipts side of the cash book and discounts received on the cash payments side of the cash book. The single column cash book is a cash book that is used to documentation simply cash transactions of a business. Thus in double column cash book another amount column is provided on each side to record discount allowed and discount received. This extra column is used to record cash discounts.
From the following transactions, write up the cash book with three columns and. Cash ac and bank ac are two busiest accounts in ledger and they are removed from the ledger to reduce its volume and size. Cash column, bank column and discount allowed column on the debit side and cash column, bank column and discount received column on the. In discount column, we have to record the discount received on the credit side of the cash book and discount allowed on the debit side of the cash. Cash book with discount and cash column transaction. The balance of cash column is the closing cash in hand, the. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. These questions set are based on financial accounting topics. A single column cash book consists of only cash column. Record the following transactions in three column cash book of gunasekaran. And, the double column cash book has two money columns on both debit and credit sides one to documentation cash transactions and one to documentation bank transactions.
When a firm maintains a simple cash book, it need not maintain 4. The totals of discount allowed and discount received columns from two sides of cash book are posted in discount allowed ac and discount received ac respectively in the ledger. 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. Simple cash book is a document which records inward and outward cash transaction of a business without any discounts or tax. 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 discount column on the debit side of the cash book will record discounts allowed and that on the credit side discounts received. The cash book records a all cash receipts b all cash payments. The discount column in the cash book is only a memorandum column and does not stand for discount account. See this link to watch accounting classes for class 11. The cash book having two amount columns on both sides is called double column cash book.
Entries in the cash book are then posted into the general. Remember the following points when writing a three column cash book. 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. The cash book records a all cash receipts b all cash payments c both a andb d all credit transactions 3. A triple column cash book or three column cash book is one which consists of. What is the difference between a single column cash book and a double column cash book. Cash book ii 1120 is a set of multiplechoice questions and answers. A two column cash back records discount allowed and discount received along from acct 101 at national institute of technology, calicut.
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