PRINCIPLES OF ACCOUNT | MARTINS LIBRARY

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      bank column for  money deposited and money withdrawn  from the bank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  31^st March, 2009.

 

Date	Particular	Folio	Cash N	Bank N	Date	Particulars	Folio	Cash N	Bank N
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