Question

How to prepare a three column cash book ?

Answer 1

Three column cash book is somewhat similar to Ledger posting.
Follow the proforma given below.

But sometimes, contra entry will be used:
1) when a/c is opened with the bank
2) cash deposited with the bank
3) cash withdrawn for office use.
4) cheques deposited on the  day of other than the day received.

Some points has to be kept in mind while preparing three column cash book like
1) cash withdrawn from the bank for personal use.
2) cheque dishonoured