Livestock Economics, Marketing and Business Management

THREE COLUMNAR CASH BOOK

• This type of cash book contains the following three columns on each side:
  • Cash column for cash received and cash paid
  • Discount column for discount received and discount paid
  • Bank column for money deposited and money withdrawn from the bank.
  • The proforma of such a Cash book is given below.

  Dr.						Cr.
  Dt.	Particulars	L.F.	Discount	Cash	Bank	Dt.	Particulars	L.F.	Discount	Cash	Bank
  0

Exercise 3

• 1. Prepare a three column cash book from the following particulars.

1998

• Jan. 1 Cash in hand Rs.1,600 and Bank overdraft Rs.1,000.
• 7 Discounted a bill for Rs.5,000 at 1 % through Bank.
• 9 Paid into Bank Rs.1,000.
• 11 Joginder who owed us Rs.2000 became bankrupt and paid us 50 paise in the rupee.
• 15 Withdrew from Bank for private expenses Rs.100.
• 20 Received repayment of loan Rs.3,000 and deposited out of it Rs.2,000 in the Bank.

Solution                                                                                                                                   

Dr.						Cr.
Date	Particulars	L.F	Disc.	Bank	Cash	Date	Particulars	L.F	Disc.	Bank	Cash
Jan.1 7 9 11 20	To Balance b/d To Bill receivable To Cash (C) To Joginder To loan repaid To cash ( C ) To balance b/d		50 ____ 50 ____	4,950 1,000 2,000 ____ 7,950 ____ 6,850	1,600 -- 100 3,000 _____ 4,700 _____ 1,700	Jan 1 9 15 20	By Balance b/d By Bank ( C ) By Drawings By Bank ( C ) By balance c/d			1,000 100 6,850 ____ 7,950 ____	1,000 2,000 1,700 _____ 4,700 _____