What is a triple column cash book and explain its format?

Triple column cash books have three columns on both the debit and credit side of the cash book. These cash books record cash transactions, bank transactions and discounts. Both cash and bank transactions of column cash books are balanced and totaled periodically; discount column of triple column cash books is only totaled, but not balanced.

Separate accounts are maintained in the general ledger for discount allowed and received. Discount column on the debit side represents a discount given to customers during a period.

Discount allowed is an expense and this column on the credit side represents discount from suppliers during a period. Discount received is income.

Format

The format of triple column cash book is as follows −

Here,

• Date − Records transaction date.

• Description − Records name of account debited/credited.

• Voucher number (VN) − A document that supports a transaction.

• Posting reference (PR) − Unique number assigned in ledger.

• Discount − Discount allowed is recorded on the debit side; discount allowed is recorded on the credit side.

• Cash − Cash received is recorded on the debit side; cash paid is recorded on the credit side.

• Bank − All transactions (receipts and payments) through the bank are recorded in the bank column.

Advantages

• Accounting for discount received
• No need to maintain ledger of bank tale
• Records cash and utilize with in cash accounting
• Records transactions related to cash, bank and discount
• Substitutes following
  • Cash account creation in ledger
  • Bank account creation in ledger
  • Discount received creation in ledger
  • Discount allowed creation in ledger