Question

Prepare three column cash book November 2018​

Answer 1

Answer:

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).