Three Column Cash Book Example

In modern business, we complete almost all the transactions through bank. We pay off cash through check or online bank transfer. We also collect money through check. So, it is necessary to show one more column in cash book except cash column and discount column. With following example, you can understand it deeply.
There are following three columns in triple column cash book. 

a) Discount Column
b) Cash Column
c) Bank Column

Write out the following transactions in the Triple column cash book of Sitaram:
2013
Jan. 1 Sitaram commences his business with cash = Rs. 30000
Jan 2 He pays into bank current account = Rs. 20000
Jan. 3 He receive cheque from kulwant rai on account = Rs. 1000
Jan. 7 He pays kulwant rai's cheque into bank = Rs. 1000
Jan. 10 He pays Radha Sharan by Cheque = Rs. 1980
and receive discount = Rs. 20
Jan. 11 He receive cheque from Wasim = Rs. 970
 and allow him discount = Rs. 30
Jan. 15 He makes sales for cash = Rs. 2000
Jan. 17 Cash deposited into bank = Rs. 3000
Jan. 19 He purchased a motor car by cheque = Rs. 6500
Jan. 20 He purchased goods by cheque = Rs. 1500
Jan. 22 He pays jajoo traders in cash = RS. 2000
and receives discount = Rs. 100
Jan. 29 He withdraws from bank for office use = Rs. 500
Jan. 30 He purchases furniture by cheque = Rs. 1200
Jan. 30 Cheque received from sham endorsed to Ram = Rs. 5000

Dr.Cash Book (Triple Column)Cr.
DateReceiptsDiscount allowedCash BankDatePaymentsDiscount received CashBank
2013 Jan. 1To Capital300002013 Jan. 2By Bank (C)20000
Jan. 2To Cash (C)20000Jan. 7By Bank (C)1000
Jan. 3To Kulwant Rai1000Jan. 10By Radha sharan201980
Jan. 7To Cash (C)1000Jan.  17 By Bank (C)3000
Jan.11To Wasim30970Jan. 19By Motor Car6500
Jan.15 To Sale2000Jan. 20By Purchase1500
Jan.17To Cash (C)3000Jan. 22By Jajoo traders1002000
Jan.29To Bank (C)500Jan. 29By Cash (C)500
Jan. 30By Furniture a/c1200
Jan. 30By Balance C/d750013290
3033500249701203350024970
May 1To Balance b/d750013290

Remember : a) If we deposited money into bank or withdraw money from bank we have to show such amount both cash column in one side and bank column in other side. So, these are the contra entries and its double entry has completed in cash book. We show c just front of entries.

b) Before showing discount column, we have to show ledger folio column both side, due to shortage of space, we did not show.

c) When we get a cheque but we have endorsed to some other person, it is recorded in cash book because this is neither receipt nor payment from cash or our bank. Its record will be done through journal entry. So, we will not show jan. 30 endorsement transaction in cash book.
.
Name

"accounting software" "cost accountant" "financial management" account accountant accounting accounting education accounting format accounting glossary accounting questions accounting software ad advertising american express answer auditing b.com balance sheet bank bba BCA bonus business Business Dictionary CA CA- IPCC CA-CPT CA-Final capital career Category cfa children coaching company conferences Consignment Accounting contact corporate accounting cost cost accounting CPT credit card debit card debt degree depreciation dictionaries donation earning ecommerce economics education Events finance Finance Dictionary financial financial accounting financial mathematics Financial Ratios forex management free funds google google apps google talk guest writer Help Center ICWAI IFRS inspiration insurance terms interest journal entries lectures List m.com management accounting mathematics MBA MCA media mutual funds ngo notes overhead pdf pnb presentation Prof. Vinod profiles quickbooks quiz ratio rbi reporting Service Tax shares solution students tally tax teacher teaching Test Testimonials tips treasury management tutorial UGC NET Commerce video webinars Wikipedia working capital
false
ltr
item
Education of Accounting : Three Column Cash Book Example
Three Column Cash Book Example
Education of Accounting
http://education.svtuition.org/2013/12/three-column-cash-book-example.html
http://education.svtuition.org/
http://education.svtuition.org/
http://education.svtuition.org/2013/12/three-column-cash-book-example.html
true
8374141921294355176
UTF-8
Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock