Types of three column cash book

Discount columns in both side are not balanced only totaled. The procedure of recording transactions in a triplethree 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. Yourarticlelibrary this cash book has the cash, the discount and additionally the bank columns in it. 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. And so having a bank column in your cash book makes things concise and simpler to understand. Top 3 types of cash books with specimen simple cash book. 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.

What is a cash book definition, explanation and types. Three column cash book analytical petty cash book the imprest system of betty cash posting petty cash to the ledger looking. Double column cash book cash book with bank column. The cash book that has three columns for discount received and paid, cash transactions and bank transactions is called three column cash book. Simple cash book contains only one amount column on each side debit and credit. Explanation 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. A cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals.

In such a cash book, cash columns and bank columns represent cash ac and bank ac respectively. Please differentiate for me the following types of cash books. The discount column on the debit side of the cash book will record discounts allowed and that on the credit side discounts received. Since the development of banking most firms, these days prefer to deal in cheques or other such bills of exchange. 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.