Topic: Three Column Cash Book
The three column cash book contains three columns on
each side as follows:
I.
cash
column for cash received and cash paid
II.
bank
column for money deposited and money
withdrawn from the bank
a. trade
discount granted by the seller to a customer
in order to encourage the customer to buy in large quantities and to continue to patronize
the business and cash discount granted
in order
to encourage the buyer to pay cash promptly or within the credit
period allowed. The discount received and discount allowed
mentioned above, relate to cash
discounts.
Illustrations
The cash book of
s. Ofoke is maintained with cash, bank, and discount columns .
during the months of march, 2009, the
following transactions took place
March 1
cash balance in hand N100, AND
at bank N12220
March 2 paid j. Boniface by cheque N105 in full
settlement of his account for N110
March 5 cash purchases N48, and
purchases by cheque N850
March 10 cahs
sales N 780
March 12
cash paid into bank N560
March 18 received cheque from J Robens N 65 in full
settlement for his account for N68
March 23 paid
N650 into bank
March 26 cash sales N400
March 28 Drew cash from bank for office use N200
REQUIRED
To balance
the cash book and bring down
the balances of cash in hand and at bank on 31st March, 2009.
Date
|
Particular
|
Folio
|
Cash N
|
Bank
N
|
Date
|
Particulars
|
Folio
|
Cash
|
Bank
|
March 1
10
12
15
18
23
26
28
|
Balances
Sales
Balances B/d
|
C
C
C
|
2,900
450
650
120
4120
940
|
1,800
1000
2850
1955
|
April 4
April 10
April 20
April 26
April28
April 29
April 30
|
Bank
Purchases
Purchases
Cash
Office expenses
Bank
Wages
Balance c/d
|
C
C
C
|
1850
300
30
1000
940
4120
|
700
120
75
1955
2850
|