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Triple/three column cash book - Accounting for Management 2025

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Chapter 5 of 'Principles of Accounting – XI' by Sameer Hussain focuses on the Three Column Cash Book, detailing its components such as cash, bank, and discounts. It explains the types of cash books (simple, double, and triple column), the treatment of transactions including contra entries and dishonoured cheques, and provides illustrations and practice questions to reinforce understanding. The chapter emphasizes the importance of accurately recording cash receipts and payments in a structured format.

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What are the contra-entry rules in a three column cash book?

In case of three column cash book, when cash is withdrawn from bank for use in the office the amount is entered in the bank column in the payment side and also in the cash column on the receipt side. Such entries are called contra entries and a letter C should be written in front of such entries in the L.F. column.

What are the rules of triple column cash book?

A 3-column cash book is used to record cash discount allowed, cash discount received, cash and cheques received and paid during the year. The amount column in the ledger is sub divided into 3 columns each side. Discount allowed is recorded on the debit side and discount received on the credit side.

What are the rules of simple column cash book?

1] Simple Cash Books This is also known as a Single Column Cash Book. This cash book will only record cash transactions. The cash coming in (receipts) will be on the left and the cash payments will be on the right. And since we will record all cash transactions here there is no need for a cash ledger account.

How to arrange a three column cash book?

In a three column cash book, three columns are provided for the amounts on each side. One column records cash receipts and payments, the second records banking transactions, and the third records discounts received and allowed.

Which transactions are not recorded in the triple column cash book?

Credit transactions are not recorded on the cash book. These receipts include bank-related deposits and withdrawals. A credit transaction is the repayment of money or goods or services or properties sold or leased.

triple column cash book pdf

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What is the three column accounting form?

debit, credit, and balance. A three-column account ledger has columns for debit, and credit adjustment, and balance columns. The debit and credit columns show the effect of the transaction, and the balance shows the account balance after the transaction.

How to do a 3 column cash book?

The three column cash book is simply the traditional two-column cash book with the addition of an extra column at each side. This extra column is used to record cash discounts: discount allowed column at the debit side, discount received column at the credit side. The discount columns are not accounts.