DEPARTMENT OF TECHNICAL EDUCATION

ANDHRA PRADESH
Name : K.HANUMANTHA RAO
Designation : Head of Section
Branch : Commercial & Computer
Practice (CCP)
Institute : GPW/Guntur
Year/Sem : I Yr
Subject : ACCOUNTANCY-I
Sub-Code : CCP-102
Topic : CASH BOOK
Duration : 150 minutes
Sub Topic : Triple Column Cash Book
Teaching Aids : PPT, ANIMATIONS
CCP102.60 to 62 1
Objectives
At the end of the period, the student will
be able to :
 Prepare 3 Column Cash Book

(Cash Book with discount, cash & bank columns)

CCP102.60 to 62 2
Recap
 We have seen two column cash book
 It means cash with discount
Or
 Bank with discount

CCP102.60 to 62 3
 Triple Column Cash Book
(Cash Book with discount, cash & bank columns)

CCP102.60 to 62 4
3 column Cash Book – its need:

 Cash, discount and bank transactions recorded

in one book
 Cheques deposited in the bank recorded here
 All payments made through cheques recorded too

CCP102.60 to 62 5
3 column cash book need contd.
Bank and discount accounts need not be maintained
separately.
Time and Stationery can be minimised
This book is a mixed record of Three accounts
 Discount account as nominal account
 Cash account as Real account
 Bank account as personal account

CCP102.60 to 62 6
Items mainly recorded in Three column cash book
(a) discount allowed;
(b) discount received;
(c) Payment by cash/cheque;
(d) Receipt of cash/cheque.
Discount allowed is a concession given by
businessman to customers.
Discount received is concession received by
businessman from suppliers.
 It is also called Three column cash book

CCP102.60 to 62 7
 Proforma of Three column cash book
Dr. Cr.
Date Particulars L Discou Cash Bank Date Particulars L Discoun Cash Bank
F nt Rs. Rs. F t Rs. Rs.
Allowe Allowed
d

CCP102.60 to 62 8
Points to remember while preparing Triple
Column Cash Book

CCP102.60 to 62 9
 DEBIT SIDE (LH Side of 3 CB):
a) All cash or cheques received and discount
allowed.
 CREDIT SIDE (RH Side of 3 CB):
a) All payments by cash or cheques and discount
received
 CASH column always shows Dr. balance.
 BANK column, mostly, shows Dr. balance
 BANK column, sometimes, shows Cr. Balance
(called OVERDRAFT)

CCP102.60 to 62 10
How to enter transactions in Triple Column
Cash Book

CCP102.60 to 62 11
 First read the transaction.
 Think whether cash transaction or cheque
transaction
 If it is cash transaction and cash comes in , record
cash received in amount column on the debit side
of the Cash column
 If it is cheque received, record the same on the
debit side of the cash column only unless it is
deposited on the same day into Bank
 If discount is there in the transaction, record the
same in discount allowed column.

CCP102.60 to 62 12
1. Record the date of the transaction in date
column.
2. Record in particulars column from whom the cash
or cheque is received/cause of Receipt.
3. If it is cash transaction and cash goes out, record
cash Paid in amount column on the credit side of
the Cash column
4. If it is bank transaction and cheque is issued,
record the same on the credit side of the bank
column
5. If discount is there in the transaction, record the
same in discount received column.
CCP102.60 to 62 13
• Record the date of the transaction in date column.
• Record in particulars column to whom the cash is
paid/ cheque is issued /cause of payment.
• If it is a contra entry, mention the alphabet ‘C’ in the
ledger folio column on the both the debit and credit
sides.
• If cash is withdrawn from the bank for the business
use, it should be recorded in the cash column on
debit side and bank column on the credit side of the
cash book.

CCP102.60 to 62 14
• Similarly if we deposit cash into bank, it should
be recorded in the bank column on debit side
and credit side the cash column of the cash
book.
• Follow the above steps for every transaction.
• The cash and the bank columns are balanced
periodically.
• But the discount column need not be balanced.
These columns are totalled and the amounts are
carried forward to ledger accounts.

CCP102.60 to 62 15
Contra Entry

CCP102.60 to 62 16
Meaning: If a Transaction requires entries on both
the debit and credit sides simultaneously,
it is called ‘‘ Contra Entry’’
 Here both the sides are effected
 Contra Entry doesn’t have ledger folio
 Alphabet ‘C’ in the ledger folio column
indicates Contra Entry on both the sides.
 ‘C’ means Contra Entry

CCP102.60 to 62 17
The Contra Entry appears in the following occasions
a) When an account is opened with a bank.
b) The firm’s cash is deposited in the bank.
 In the above transactions, the cash balance
decreases, the cash in the bank increases
c) The cash is withdrawn from bank for office use.
 In the above transaction, the cash balance
increases, the cash in the bank decreases.

CCP102.60 to 62 18
a) The cheques received from debtors, are deposited
in the bank.
• When cheque received from debtor is
deposited in the bank on the same day.
The above transaction is not a Contra Entry
ii. When cheque received from debtor is
deposited in the bank on the next day.
The above transaction is a Contra Entry

CCP102.60 to 62 19
Note:
2. When cheque received from a debtor is deposited
in the bank on the same day, the entry will be as
under:
Bank a/c Dr.
To Debtors a/c
(Being the cheque received from the debtor is
treated as cash)
6. When the cheque received from a debtor is not
deposited into bank on the same day, two entries
are recorded.
i. When the cheque is received
Cash a/c Dr.
To debtor a/c
(Being the cheque received from the debtor is
treated as cash) CCP102.60 to 62 20
ii. When the cheques are sent to the bank next day
for collection
Bank a/c Dr.
To Cash a/c
(Being the cheque deposited in the bank)
The above entry (2(ii)) is called contra entry.

e) Cash withdrawn from the bank for personal use is

not a Contra Entry.

CCP102.60 to 62 21
Example1: Prepare a three column cash book from
the following

2005 Oct 01 Kishore commenced business with

Rs. 25,000.
’’ 03 Cash deposited in bank Rs. 5,000.
’’ 06 Furniture purchased Rs. 1,000.
’’ 08 Cash purchases Rs. 5,000.
’’ 09 Sales to Raj Rs. 2,000.
’’ 12 Purchases from Misra Rs. 6,000.
’’ 16 Commission paid by cheque Rs. 500.
’’ 19 Cash received from Raj Rs. 1,900
Discount allowed Rs. 100.

CCP102.60 to 62 22
2005 Oct 20 Cash paid to Misra Rs.3,000, Rs.2,900
in cheque and discount received Rs.100.
’’ 23 Withdrawn from bank for office use
Rs.2,000.
’’ 26 Sales to Santhosh Rs.8,000
Discount allowed Rs.200 He paid
Rs. 4,000 through cheque and cash
Rs. 3,800.
’’ 27 Cheque deposited in bank.(Santhosh’s
cheque).
’’ 28 Postal charges Rs.20.
’’ 30 Cash transferred from personal account
to firm’s account Rs.1,000.
’’ 31 Rent paid Rs.1,000; Salaries paid
Rs.500. CCP102.60 to 62 23
 Kishore Three column cash book
Dr. Cr.
Date Particulars L Discou Cash Bank Date Particulars L Discoun Cash Bank
F nt Rs. Rs. F t Rs. Rs.
Allowe Allowed
d
2005 2005
Oct 1 To capital a/c 25000 Oct 3 By Bank a/c C 5000
3 To Cash a/c C 5000 6 By furniture a/c 1000
9 To Sales a/c 4000 8 By Purchases a/c 5000
19 To Raj a/c 100 1900 16 By commission a/c 500
23 To Bank a/c C 2000 20 By Misra a/c 100 3000 2900
26 To Sales a/c 200 7800 23 By Cash a/c C 2000
27 To Cash a/c C 4000 27 By Bank a/c C 4000
30 To capital a/c 1000 28 By Postage a/c 20
31 By Rent a/c 1000
31 By Salaries a/c 500
31 By Balance c/d 31180 4600

300 40700 10000 100 40700 10000

To Balance 31180 4600

Nov
1 b/d CCP102.60 to 62 24
Summary
 All Cash and Bank Receipts and Discount
Allowed are recorded on the debit side of the
Triple Column Cash Book.
 All Cash and Bank Payments and Discount
Received are recorded on the credit side of the
Triple Column Cash Book.

CCP102.60 to 62 25
Quiz

• Cash withdrawn from the bank for

personal use is
• Not a Contra Entry
• Contra Entry
• None of the above

CCP102.60 to 62 26
2. Cheques received and deposited on the
same day
a) Contra Entry
b) Not a Contra Entry
c) None of the above

CCP102.60 to 62 27
Frequently Asked Questions
3. Prepare a Triple column cash Book of Raja
2005 Jan 01 Cash in Hand Rs. 8,000
Cash at Bank Rs. 20,000
’’ 04 Mr. P Settled his account of
Rs. 1,800 with a Discount of 5%
’’ 05 Deposited money in the bank Rs. 2,000
’’ 07 Cash Sales Rs. 9,100
’’ 09 Cash received from Satyam Rs. 950
’’ 12 Cash purchases Rs. 7,250
’’ 16 Purchased furniture Rs. 1,000
CCP102.60 to 62 28
’’ 17 Received cash from Sivam Rs. 975
Discount allowed Rs. 25
’’ 20 Paid to Satyam Rs. 1,450
Discount received Rs. 50
’’ 22 Salaries Paid Rs. 750
’’ 24 Drawings Rs. 1,000
’’ 28 Cash Sales Rs. 8,000
’’ 30 Paid into Bank Rs. 3,000
’’ 31 Cash received from Radha Rs. 875
Discount allowed Rs. 25
ANS: Cash balance Rs.13,160; Bank balance:Rs25,000
Discount allowed Rs.140, Discount received Rs.50
CCP102.60 to 62 29
Thank you

CCP102.60 to 62 30