Question

21)
Prepare a three column cash book from the following details.
2016
April 1 Cash in hand Rs. 1,200, Bank overdraft Rs. 4,200
1 Cash sales Rs. 6000
2 Deposited in bank Rs. 6,200
5 Cash received from Ajay Rs. 3,500 discount allowed Rs. 500
8 A Cheque for Rs. 2,980 received from Krishna full settlement of his account
Rs. 3000
15 Cheque of Krishna Deposited in bank
18 Cash withdrawn from bank for office use 1500
25 Dividends collected Rs. 2000
28 Goods purchased on cash Rs. 1,200
30 Cash in Excess of Rs. 200 was deposited in Bank.
m -x xx xx 998
T YT BY​

Answer 1

Triple columnar cash book:

The cash book which contains three columns for amount on both the sides in addition to Date, particulars & L.F columns is said as 'Triple columnar Cash book' or 'Cash book with cash, Bank & Discount columns'. It is very useful to record contraentries.

The main three columns in which amounts are recorded are:

• Cash column
• Bank column
• Discount column

Contraentry:

Contraentry can be only recorded in a triple columner cash book.It affects both the Cash & Bank columns of the cashbook. Eg:

• Cash withdrawn from bank
• Cash deposited into the bank

In the above question, Transaction om dates 2,15,18,30 April,2016 are contraentries.

In transaction number 8, the amount diff of 3000 & 2980 is recorded as 20.

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