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
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.
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. | |||||||
| Date | Receipts | Discount allowed | Cash | Bank | Date | Payments | Discount received | Cash | Bank |
| 2013 Jan. 1 | To Capital | 30000 | 2013 Jan. 2 | By Bank (C) | 20000 | ||||
| Jan. 2 | To Cash (C) | 20000 | Jan. 7 | By Bank (C) | 1000 | ||||
| Jan. 3 | To Kulwant Rai | 1000 | Jan. 10 | By Radha sharan | 20 | 1980 | |||
| Jan. 7 | To Cash (C) | 1000 | Jan. 17 | By Bank (C) | 3000 | ||||
| Jan.11 | To Wasim | 30 | 970 | Jan. 19 | By Motor Car | 6500 | |||
| Jan.15 | To Sale | 2000 | Jan. 20 | By Purchase | 1500 | ||||
| Jan.17 | To Cash (C) | 3000 | Jan. 22 | By Jajoo traders | 100 | 2000 | |||
| Jan.29 | To Bank (C) | 500 | Jan. 29 | By Cash (C) | 500 | ||||
| Jan. 30 | By Furniture a/c | 1200 | |||||||
| Jan. 30 | By Balance C/d | 7500 | 13290 | ||||||
| 30 | 33500 | 24970 | 120 | 33500 | 24970 | ||||
| May 1 | To Balance b/d | 7500 | 13290 | ||||||
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.
