What Is Treble Or Three Column Cash Book?

Notes on three column cash book

Record in the 3 column cash book.
1.may 2 balance brought down cash 50000,bank150,000
2.paid rent 13000
3.purchase good worth 26000 from Nyanga
on Credit
4.cash sale 280000
5.banked cash 20000

Following are the uses of a three column cash book:
- It records cash, bank and discount amounts on each side.
- The cash receipts, deposits and discount allowed are recorded on the debit side and cash payments, withdrawals and discount received is on the credit side.
- It helps in accounting for the discount that has been allowed or received.
- It serves the purpose of cash account and bank account
- It does not require to open two accounts for discount in the ledger.
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Its record of cash

Three column cash book

It is a cashbook having cash,bank,and discount allowed on the debit side and discount recieved on the credit side

When cash is received from the debtors, discount may be allowed to them. And when cash is paid to creditors, discount may be received from them. It means the cash and the discount are very much related to each other. Another interesting thing is that when the cash is received, the discount is allowed and both cash account and discount account are debited. On the other hand, when the cash is paid, the discount is received and both the cash account and the discount account are credited in the books of account.    Thus in double column cash book another 'amount' column is provided on each side to record discount allowed and discount received. 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. It may also be noted that when 'Discount' column is added with both sides of double column cash book it becomes a "Treble or Three column cash book". It must be remembered that the discount column in treble column cash book is not an account.    Both the discount allowed account and discount received account are opened in the ordinary ledger. These columns are memorandum columns only; they help us remember how much discount has been allowed or received. The totals of discount allowed and discount received columns from two sides of cash book are posted in discount allowed A/c and discount received A/c respectively in the ledger.