conclusion for triple column cash book
Answers
Answer:
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.
Cash Book explanation:
The triple column cash book (also referred to as three column cash book) is the most exhaustive form of cash book which has three money columns on both receipt (Dr) and payment (Cr) sides to record transactions involving cash, bank and discounts. A triple column cash book is usually maintained by large firms which make and receive payments in cash as well as by bank and which frequently receive and allow cash discounts.
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).
Format:
Has been attached below...
Example Question:
The P&G LLC records its cash and bank transactions in a triple column cash book. The following transactions were performed by the company during the month of June 2018.
Jun 01: Cash in hand $800 (debit balance), Cash at bank $3,365 (debit balance).
Jun 03: Paid James & Co. by check $1,175, discount received from him $25.
Jun 05: Received from David & Co. a check amounting to $990, discount allowed to him $10.
Jun 07: Deposited into bank the check received from David & Co.
Jun 10: Purchased stationary for cash, $170.
Jun 15: Purchased merchandise for cash, $1,280.
Jun 15: Cash sales for the first half of the month, $2,450.
Jun 16: Deposited into bank $1,250.
Jun 18: Withdrawn from bank for personal expenses $100.
Jun 19: Issued a check amounting to $1,630 to James & Co. and discount received from him $20.
Jun 21: Drew from bank for office use, $420.
Jun 24: Received a check amounting to $1,435 from Henry & Co. and allowed him a discount of $15. The Henry’s check was deposited into bank immediately.
Jun 25: Paid a check to Jacob Inc. amounting to $385 and received a discount of $15.
Jun 27: Bought furniture for cash for office use, $380.
Jun 29: Paid office rent by check, $350.
Jun 30: Cash sales for the second half of the month $4,550.
Jun 30: Paid salaries by check $760.
Jun 30: Withdrew from bank for office use $470.
Required:
Record the above transactions in a triple/three column cash book of P & G LLC and balance the cash and bank columns of the cash book.
Post entries from triple/three column cash book to appropriate accounts in general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledger.
The solution for the above example has been attached
Hope that helps!
