Three-column Cash Books and Discounts . Cash Discounts for quick payment . It is better for the firm if as customer pays their account quickly. Many companies will offer a discount to their debtors if they pay quickly. The term 'Cash Discount' refers to the allowance given for quick payment.
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 ...
Three column Cash Book Problems PDF Download. Problem 1: On April 1, 2017, Hassan Sajjad Store Cash Book showed debit balances of Cash Rs. 1,550 and Bank Rs. 13,575.
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.
It means the Cash Book now will have three "Amount Columns on each side, i.e. Cash Column, Bank Column and Discount Allowed Column on the debit side and Cash Column, Bank Column and Discount Received Column on the credit side.
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.
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.
Cash Book is in a way, a cash account with debit and credit side and Cash account is an asset account, so the rule followed is Increase in assets to be debited and Decrease in asset is to be credited.
A three-column cash book is one that has three columns on both the debit and credit side of the journal. The first column corresponds to cash transactions, the second to bank transactions and the third to discounts issued and received.
A triple column cash book or three column Cash Book is one which consists of three separate columns on the debit side as well as credit side for recording cash, bank and discount. The discount column on the debit side of the cash book will record discounts allowed and that on the credit side discounts received.