Tag: subsidiary books - 2

The debit side of the cash book records all cash receipts. Cash discount allowed is an expense associated with receiving cash from debtors, so it is recorded on the same side as the receipt.

A three-column cash book contains both cash and bank columns, which serve the purpose of the cash and bank accounts in the ledger. Therefore, separate accounts for these are not required in the ledger.

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

Contra entries involve transfers between cash and bank. While they appear in three-column cash books, they are fundamentally a feature of any cash book that includes both cash and bank columns (a double column cash book).

A three-column cash book typically includes columns for cash, bank, and discount. Petty cash is usually maintained in a separate petty cash book.

Cash is an asset, and assets have debit balances. Since the cash column records cash in hand, it will always show a debit balance or be nil.

The purchase of furniture is a cash transaction. All cash payments are recorded in the cash book.

The cash book records the actual cash received. The discount allowed is recorded alongside the cash receipt in the discount column of the cash book.

Cash sales are cash receipts. All cash receipts are recorded in the cash book.

The sale of furniture for cash is a cash receipt. All cash receipts are recorded in the cash book.