Triple/three column cash book

By: Rashid Javed | Updated on: September 21st, 2019

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).

The cash and bank columns of triple column cash book are used as accounts and are periodically totaled and balanced just like in case of a double column cash book. The discount column is only totaled. It is not balanced because it does not work as an account.

In general ledger, two separate accounts are maintained for discount allowed and discount received. The total of discount column on debit side of cash book represents the total cash discount allowed to customers during the period and is posted to the discount allowed account maintained in the ledger. The total of discount column on credit side represents the total cash discount received from suppliers during the period and is posted to the discount received account maintained in the ledger.

Discount allowed is an expense and discount received is an income of the business.

Format

The format of a triple/three column cash book is given below:

The triple column cash book has 7 columns on both debit and credit sides. The purpose of each column is briefly explained below:

  1. Date: The date column is used to enter the transaction date.
  2. Description: The description column is used to write the name of the account to be debited or credited in the ledger as a result of cash or bank transaction.
  3. Voucher number (VN): A voucher is a document in support of a transaction. The serial number of the voucher is entered in this column.
  4. Posting reference (PR): Each account in the ledger is assigned a unique numbered. The number each ledger account that is written in description column is entered in PR column.
  5. Discount: The amount of discount allowed is recorded on debit side and the amount of discount received is recorded on credit side in discount column.The totals of debit column and credit column are posted to discount allowed account and discount received account respectively.
  6. Cash: The amount of cash received (net of any discount allowed) is entered on the debit side and the amount of cash paid (net of any discount received) is entered on the credit side in cash column. This column is totaled and balanced like a ledger account.
  7. Bank: The amount of all receipts and payments made by the bank account are entered in bank column of the cash book. This column is also totaled and balanced like a ledger account.
A D V E R T I S E M E N T

Posting a three column cash book to ledger accounts

As explained earlier in this article, only cash and bank columns of triple column cash book work as accounts and are therefore balanced. The discount columns on both receipt and payment sides are only totaled and not balanced.

The procedure of posting entries from a cash book to ledger accounts has been explained in single column cash book article. The same procedure is followed for posting entries from double as well as triple column cash book to ledger accounts.

The following example summarizes the whole explanation of triple column cash book given above.

Example

The P&G LLC records its cash and bank transactions in a triple column cash book. The following transactions were performed by the company during the month of June 2018.

  • Jun 01: Cash in hand $800 (debit balance), Cash at bank $3,365 (debit balance).
  • Jun 03: Paid James & Co. by check $1,175, discount received from him $25.
  • Jun 05: Received from David & Co. a check amounting to $990, discount allowed to him $10.
  • Jun 07: Deposited into bank the check received from David & Co.
  • Jun 10: Purchased stationary for cash, $170.
  • Jun 15: Purchased merchandise for cash, $1,280.
  • Jun 15: Cash sales for the first half of the month, $2,450.
  • Jun 16: Deposited into bank $1,250.
  • Jun 18: Withdrawn from bank for personal expenses $100.
  • Jun 19: Issued a check amounting to $1,630 to James & Co. and discount received from him $20.
  • Jun 21: Drew from bank for office use, $420.
  • Jun 24: Received a check amounting to $1,435 from Henry & Co. and allowed him a discount of $15. The Henry’s check was deposited into bank immediately.
  • Jun 25: Paid a check to Jacob Inc. amounting to $385 and received a discount of $15.
  • Jun 27: Bought furniture for cash for office use, $380.
  • Jun 29: Paid office rent by check, $350.
  • Jun 30: Cash sales for the second half of the month $4,550.
  • Jun 30: Paid salaries by check $760.
  • Jun 30: Withdrew from bank for office use $470.

Required:

  1. Record the above transactions in a triple/three column cash book of P & G LLC and balance the cash and bank columns of the cash book.
  2. Post entries from triple/three column cash book to appropriate accounts in general ledger, accounts receivable subsidiary ledger and accounts payable subsidiary ledger.

Solution

1. Triple/three column cash book

1. Check received from David & Co. on June 05 has been recorded in the cash column because it was not deposited into bank on the same date.
2. 450 is the number of discount allowed account in the general ledger. The discount allowed account is an expense account.
3. 455 is the number of discount received account in the ledger. Discount received account is an income/revenue account.

1. Posting to ledger accounts:

(i). General ledger:

(ii). Accounts receivable ledger:

(iii) Accounts payable ledger:

A D V E R T I S E M E N T
137 Comments on Triple/three column cash book
  1. Valentine Munemo

    it was helpful

      1. Nicholas kafula

        y drawings on credit side ,I need yo explanations sir /madam

        1. Accounting For Management

          Drawings is an outflow of cash and any outflow of cash from business is recorded on the credit or payments side of cash book. Owner and business are two separate entities. If owner takes cash from business, it must be treated as cash outflow from business perspective.Read economic/business entity concept of accounting

          1. Ezra

            What about buying goods on credit where does it lie?

        2. Ruth

          Because money is being taken out of the company

          1. Saifullahi

            At dis point you must open purchase Day book and then record that transaction

          1. Opemipo

            Thanks sir

        3. Temitope

          It is an outflow

        4. Zakaria

          because money have been removed out of the business

        5. Tawananyasha

          Very helpful

      2. Faisal

        Sir
        I don’t understand note 2 & 3.
        Please explain 450 and 455…

        1. Henry binven

          Is all there sir

          1. Opemipo

            What about petty cash book

      3. sani

        Double colum cach book i don’t understand

    1. Hilda Lemijonathan

      It was not helpful at all

      1. Don Ekeoha

        Hilda, ask the author to check his subsidiary/ memorandum accounts ( sales ledger and purchases ledger) The individual customer in the sales ledger are supposed to be debited and not credited as he did.likewise the individual suppliers in the purchases ledger should be credited and not debited.

      2. Henry binven

        Why did you said that

    1. Faisal

      Oh
      I understand now after reading your other reply about it..
      Thanks…

      1. Magic

        Transferred to current account from deposit account $1000. How will it be treated?

      2. CHIAGOZIEM NWADIKE

        How far

  2. Emmanuel

    Please tell me how you arrived at the figures for bal b/d .
    Thank you

    1. Accounting For Management

      It is the closing balance (bal c/d) of the cash book for the previous month.

      1. Peace Kalu

        I would love you to help me solve this account

    2. Nigerian Queen

      The addition of Ur debit bank and cash subtracted from the addition of Ur credit bank and cash it is d money carried to the next month thanks

    3. loyce

      Check Jan 01 cash at hand

    4. Vestina Maclear

      Please tell me how do you find b/d

  3. Emmanuel

    Wrong post. Rather I want to know how you got the 450 for discount allowed and 455 for discount received. Thanks

    1. Accounting For Management

      450 is the number of discount allowed account and 455 is the number of discount received account in the ledger. Total cash discount allowed during the month is $25 and total cash discount received during the month is $60. The explanation is given below the example cash book given above.

    2. PJ JOSEPH

      Very helpful to new comers.
      Thanks.
      Regards.

      1. tobechukwu hephzibah chinyere

        Thank you
        my teacher asked us to give the three columns on the cash book

    3. Tabi Brandon

      Wow so wonderful pls add more questions and solving

  4. Muhammad Rukayya ubandawaki

    Wrong post rather I want to know how you got the 450 for discount allowed and 455for discount received
    Thankful

    1. Accounting For Management

      These are account numbers in ledger, not dollars. The account number of discount allowed account is 450 and account number of discount received account is 455. Please see discount allowed account and discount received account given below cash book.

      1. ikeji suday j

        plz is it important to add creditors figure/transaction while preparing a 3 column cash book, thanks

  5. devi singh

    how did you get the bal b/d figure?

  6. Gabriel

    Accounting we the best ever

  7. james

    nice like living in heaven

  8. joy

    Pls how did u get the discount

  9. Williams Toritsekpeju

    When you have other balances aside from your opening balance like cash and bank.how do you go about it

  10. Dennis

    Eh you tried but ive seen better I won’t say it is nyc Cus it isn’t chaii

  11. sharon

    What if the purchases made were on credit terms

    1. Accounting For Management

      Credit transactions are not recorded in cash book. Goods purchased on credit would be recorded in purchases journal.

    2. Divyang Tandon

      Then it would appear in journal proper not cash book

  12. Priyanshi

    Plzz tell that where we put cash at office in cash book

    1. DARPAN

      IT WILL APPEAR IN DEBIT SIDE OF CASH BOOK UNDER (BANK COLUMN)

  13. mariam

    how do we get a discount in a cash book

  14. mariam

    how do we calculate the discount in a cash book

    1. Ebubemakwe

      Example the normal price of an article is 5000 and there was a 10% discount.
      Solution
      10/100 * 5000 = 500
      = 5000-500=4500.
      I an 12 years old

  15. Ebubemakwe

    How do you get b/c

    1. ALICE

      Balance cd is diiference between the debit and and credit total of an accounting, of which with the cash book it is the difference between the debit and credit of the cash columns as well as with the bank columns

  16. Ebubemakwe

    Example an article is $5000 then they gave a 10% discount
    Solution
    10/100*5000=500
    =5000-500
    4500. If it is on cr or dr put it.

  17. Chisom Assumpta

    what of goods sold on credit, how do we record it.

    1. negede

      we record goods sold on credit on sales book/journal. because in cash book we only record cash receipt and payment (cash transaction).

    2. Don ekeoha

      Goods sold on credit should be treated on the sales day book not cash book.cash book is for cash/bank receipts and payments.

  18. Divyang Tandon

    Sir what will be the posting of received vpp for goods purchased in the cash book?

  19. Luke Olonje

    “Check received from David & Co. on June 05 has been recorded in the cash column because it was not deposited into bank on the same date.”
    Why record a check on the cash column…i think there is a big difference between check and cash…
    The correct entry was to indicate the check received on June 05 under the bank column.

    1. Accounting For Management

      You debit bank only when you deposit a check or cash into bank account. It is a general rule of writing a cash book to treat checks as cash until they are deposited into bank account of the business.

  20. Nicholas

    Very helpful! Thanks for this wonderful shared knowledge.

    1. Alex

      Helpful… Kindly if I can ask goods purchased
      On credit are they debited or credited?..

      1. Accounting For Management

        Only cash or bank transactions are recorded in cash book. Goods purchased on credit will be recorded in purchases journal.

  21. Imran

    cash at bank showing debit balance why you wrote it on receipt side it show overdraft shouldn’t it be at payment side of bank column.

  22. Jackline makena

    Thankyou….very hrlpful

  23. Dennis Kibet

    How would you know that David & Co. transaction was not deposited into bank on the same day?

  24. Eucharia

    Pls I will really love to learn more on both the 2 column cash book and one column cash book. I need online classes

  25. Tasoma bryn

    How do you treat the opening balances in the trial balance

  26. Amoh

    What about situation where after last transaction you deposit all the money into the bank leaving 15000cash at hand for example

  27. Prince

    How do you Post return inward and outward , in 3 coloum cash book

  28. DB

    This profession is the best for me

  29. Julius

    Hey,
    thank you for the great work.
    i would like to know how i can become a member of this wonderful website

  30. Micheal King

    Awesome, so helpful.

  31. Ibrahim

    Please how do u get 450 discount allowed and 455 as a discount received. thank u

    1. Accounting For Management

      These are not the dollar amounts. These are account numbers in ledger. 450 is the account number of discount allowed account and 455 is the account number of discount received account.

  32. Samuel

    A very interesting sub unit

  33. King Pep

    Why’s june 16 a contra entry

  34. joel makarot

    well done

  35. Derrick Debruyne

    Very helpfully

  36. Victor

    These column is Very important and it’s easy to understand

  37. Newton

    It’s so much helping

  38. Tumwebaze innocent

    how do u get discount

  39. Pascal Sindani

    Thank you it is very atractive.

  40. Bartic

    wrong spelling for cheque [check]

    1. Peace

      The spelling ‘check’ is actually correct, u can use check or cheque, go back to ur dictionary

  41. OMOTAYO JAMES KAYODE

    This is helpful information

  42. Okore isaac

    The information was helpful though am still confused by some authors who say discount received is posted on the debit side and vice vasa.please I need ur help

    1. Don Ekeoha

      The question I want you to address is why did I receive discount? You received discount because you were making payment to your supplier and he/she gives some discount. Discount received is an inflow and therefore should be debited to the cash book

  43. Adikz idubamo

    Tnkx…it’s really helpful

  44. kay nguni

    if they ask a question like prepare the three column cash book and show all discounts in the general ledger? how do i go about it?

  45. Rom

    What if cheque received, is deposited into Bank on the same day??

  46. Heavenly saint

    Please i want to know how bal c|d and bal b|d are gotten.

  47. Heavenly saint

    I just don’t understand it….please it’s urgent.

  48. MICHEAL MBABAZI

    how do you get to know that the check was not deposited on the same day so as to be treated as cash?…it confuses me #student

  49. Alice

    What if you are given transactions in which credit sales and purchases are involved?

  50. Abdulrahman haliru

    pls i want know how did we get 60 in jan2 james and co PRas u gave the discount of 25

  51. Sally

    How about he Bought good on credit and he had a discount

  52. sally

    thanks for this post it was so nice to learn about it

  53. Ahmad salisu

    I want know how to find the final answer of three column cash book

  54. Bedell K. Kerkula

    Thanks for the tutorials. Please how can I get regular practices on your site?

  55. Ben

    How is commission received treated in the triple column cash book?

  56. Ben

    How do I treat this transaction in the triple column cash book?
    “Paid James his account of $160, by cheque $155, having deducted$5 cash discount.”

  57. paul hucks

    Thanks for the explanation,I now get it.

  58. Phaith

    How do I post this on a 3column cash book.
    Transferred to current account from deposit account $1,000

    1. Imran

      Can u say what are the double entry for over draft as per bank account and cash account

  59. linnet

    how can you record daily sales on a double entry cash book

  60. lisa

    why does the discount allowed go to the debit side

  61. Hilda Lemijonathan

    It was not helpful at all

  62. sonu

    received a cheque from avinash and co. for goods sold in last month RS25,000 and deposited into bank. prepare a triple column cash book

  63. david w munyanganyi

    work is too much and it need a lot of time thank you sir

  64. Ssozi Derrick

    very helpful, more explanation on VN and PN is needed, HOWEVER THANK YOU SIR

  65. Reagan Omondi

    How do I treat a situation where a person withdrew all the cash from the bank except even 10 for office use

  66. Meshuki

    Please my sisters and brothers can you discribe for me that question though is confusing me

  67. Praise Udochukwu

    It was very helpful

  68. SATIMON LEMI

    Awesome notes give us more

  69. Anonymous

    For James and Co., why didn’t you deduct the cash discount??

  70. Ginika

    Pls why is discount allowed in the debit side, and discount received in the credit side, pls more light on it,

  71. Olo Godwin

    Is so helpful

  72. esther

    i dont understand ma/sir

  73. Gemini

    Is this three column Cash book it different from the one that we are learning

  74. Ecima Patrick Robert

    It’s very nice, but we need more examples for better understanding.

    1. Emmanuel Friday ojonugwa

      Thanks you very much,we really appreciate but we need more examples so we can understand it very well

  75. Henry binven

    We really appreciate your support

  76. Jesse

    Hi, I would like to ask how to insert, ” Banked $500 of the cash in hand. ” in the three column cash book, need help please. I’m totally lost.

  77. Jane larry

    What if the check has not been cashed.does it still go to the debit.and what if it’s a bounced check?

  78. Jane larry

    And please how do I place it if $50000 was payed in Cash and $200,000 was payed in check which has not being cashed?

  79. Promise

    What to do in a condition where the cash of Debit side is greater than that of credit side but bank of debit side is less than credit side? Where the next balance b/d should be written?

  80. Josiane

    Why did they put discount received in credit side and discount allowed in debit side

  81. godiya

    what are the differences between balance broght down and carried up

  82. Pitan Abraham

    Pls I need more examples of three Column cash book.

  83. Luckson Malambo

    Please help me suppose the question ask to enter the creditors and debtors into three column cash book how and where can they be recorded? Is it in the debit side of cash ACC or in credit or debit side of bank ACC or credit?

  84. Fredrick muturi

    what about bought buildings paying by cheque

  85. Peter

    where would you put the balance for purchases ledger if it was in the information.

  86. Ezra

    Credit sales are not recorded on cash book

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