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What is three column cash book describe?
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. One is used to record cash transactions, the second is used to record bank transactions and the third is used to record discounts received and paid.
What is the three column cash book give it example with specimen?
Example of Triple Column Cash Book : 01/04/21 Started a business with cash Rs 50,000/- and bank balance of Rs 2,00,000/- 04/04/21 Goods purchase worth Rs 10,000/- and payment made immediately By cheque and get discount Rs 100/- 07/04/21 Rent paid for the building Rs 1,000/- 09/04/21 Wages paid for Rs 2,500/- by Cheque.
What is a three column journal used for?
Three-column and four-column accounts are often used instead of two-column accounts. The purpose of the additional columns is to keep running balances of both debits and credits in the four-column account, or a net of the two in the three-column account.
What are the types of cash book?
Let us now look at the three main kinds of cash book a company may maintain.
- 1] Simple Cash Books. This is also known as a Single Column Cash Book.
- 2] Two Column Cash Books. Here instead of one column, we have an additional column for discounts.
- 3] Three Column Cash Books. (Source: Yourarticlelibrary)
- 4] Petty Cash Book.
What is three column cash book Class 11?
Solution. A three-column cash book includes three amount columns on both sides, i.e., cash, bank, and discount. This cash book is prepared in the same way as simple and double column cash books are prepared.
What are the advantages of three column cash book?
Triple Column Cash Book: This type of cash book records transactions related to three different types of accounts, i.e., cash, bank and discount. Thus, it substitutes the creation of cash account, bank account, discount received and discount allowed in the ledger.
What are the advantages of a three column cash book?
What is the 3 column form of account?
The first column in a three column ledger is the debit column, the secord column is the credit column, and the third column is the balance column.
What is cash book answer?
Solution. Cash Book is a book of original entry. It records all transactions related to receipts and payments of cash and deposits in and withdrawals from a bank in a chronological order.
What are types of cash book?
How do you make a 3 column graph in Excel?
Click the “Insert” tab, then “Column” from the Charts group and “Cluster Column” from the drop-down menu. The Cluster Column option is the left-most option of each of the column types, such as 2-D, 3-D or Cylinder. The cluster column chart is automatically created by Excel on the same page as your data.
How many columns are in three column cash book?
A three column cash book, also known as a triple column cash book, contains three money columns on both the debit and credit sides: one on each side for recording discount, cash, and bank amounts.
Why is it called three column cash book?
Definition and Explanation: 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. 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.
What is the importance of cash book?
Importance of cash book Maintains daily record − Transactions (cash receipts and cash payments) are recorded on a daily basis. Easy determination − Transactions made on a particular date are easily determined.
What is a three column Cash book?
A three column cash book, also known as a triple column cash book, contains three money columns on both the debit and credit sides: one on each side for recording discount, cash, and bank amounts.
What is the cash column in an account?
Cash: The amount of cash received (net of any discount allowed) is entered on the debit side and the amount of cash paid (net of any discount received) is entered on the credit side in cash column. This column is totaled and balanced like a ledger account.
Why do we add an additional column to the cash book?
When a trader keeps a bank account it becomes necessary to record the amounts deposited into bank and withdrawals from it. Fir this purpose one additional column is added on each side of the cash book.
What is the procedure of recording transactions in a triple/three column Cash book?
The procedure of recording transactions in a triple/three column cash book is similar to that of a double column cash book. The only difference between two types of cash book is that a double column cash book has two money columns (i.e., cash and bank) whereas a triple column cash book has three money columns (i.e., cash, bank and discount).