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Question
What is three column cash book?
Short Note
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.
- The transactions which increase the cash and bank balance are recorded on the debit side of the cash and bank columns respectively.
- Opening balance of cash and favorable bank balance appear as the first item on the debit side of the three-column cash book in case of existing business.
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Three Column Cash Book (Cash Book with Cash, Discount and Bank Column)
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RELATED QUESTIONS
A cash book with discount, cash and bank column is called ______.
In Triple column cash book, the balance of bank overdraft brought forward will appear in ______.
Which of the following is recorded as contra entry?
If the debit and credit aspects of a transaction are recorded in the cash book, it is ______.
Enter the following transactions in the three column cash book of Kalyana Sundaram.
| 2017 Jan. |
||
| 1 | Balance in hand | 42,500 |
| Balance at bank | 35,000 | |
| 3 | Received for cash sales | 15,700 |
| 4 | Cash paid into bank | 11,500 |
| 6 | Cash purchases | 14,300 |
| 9 | Received dividend directly by the bank through ECS | 2,000 |
| 10 | Pongal advance to staff paid through bank | 17,000 |
| 12 | Received cash from Nagarajan | 11,850 |
| and allowed him discount | 150 | |
| 17 | Paid Magesh in full settlement of his account ` 20,000 | 19,700 |
| 20 | Cash withdrawn for personal expenses | 20,000 |
| 30 | Withdrawn cash from ATM for office use | 1,500 |
Record the following transactions in the three column cash book of John.
| 2017 Dec. |
₹ | |
| 1 | Cash balance brought forward | 12,600 |
| 1 | Bank overdraft brought forward | 36,000 |
| 1 | Advance paid to petty cashier by cheque | 3,000 |
| 5 | Goods sold for cash | 12,000 |
| 7 | Dividend on shares collected by the banker | 1,000 |
| 13 | Cash paid into Bank | 10,000 |
| 14 | Interest charged by the bank for bank overdraft | 1,500 |
| 18 | Cheque issued to Siddique | 8,000 |
| Discount received from him | 200 | |
| 24 | Insurance claim received by cheque and deposited into bank | 17,000 |
| 28 | Cash received from Baskar | 15,000 |
| Discount allowed to him | 150 | |
| 31 | Deposited into Bank all cash excess of ₹ 18,600 |
Prepare a triple column cash book of Rahim from the following transactions:
| 2017 Feb. |
||
| 1 | Cash in hand | 25,000 |
| Cash at bank | 10,000 | |
| 5 | Water purifier purchased for office use by cheque | 8,000 |
| 6 | Purchased goods for cash | 9,000 |
| 8 | Received cash from Daniel | 9,900 |
| Discount allowed to him | 100 | |
| 10 | Cheque received for goods sold and deposited in the bank | 40,000 |
| 12 | Paid to Amala by cheque | 14,500 |
| Discount received from her | 500 | |
| 13 | Paid transport charges by cash | 5,000 |
| 14 | Withdrawn cash from bank for office use | 20,000 |
| 24 | Cheque received from Kumar and deposited into the bank | 15,000 |
| 28 | Kumar’s cheque dishonoured |
Brifly explain about contra entry with examples.
