Kindly explain me Triple Columner Cash Book Contraentries
Answers
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. If a business keeps a bank account and receipts and payments are frequently made through bank account than it is useful to maintain a three column cash book rather than a single column cash book or a double column cash book.
It is the custom of the business houses that discount is allowed and received for early payments of dues. If cash is paid early, creditors may allow a discount. On the other hand, if debtors pay early, a discount may be allowed to them. It may be noted that cash and discount are related to each other that’s why discount columns are also provided in Cash Book.