Triple column cash book a cash book with discount and bank column is triple column cashbook. Three accounts are combined. In business firm most of the payments are received and paid by cheque. Transactions are preformed through bank. Triple column cash book date receipts l. F discount cash bank date payments l. F discount cash bank 11. Thus a transaction in which cash a/ c and bank a/ c are involved, is recorded on both the sides of double column cash book, it is called " contra entry", from the latin prefix contra meaning ' opposite to or contra entry in three column cash book against'.
25 salaries outstanding for the particular month will appear on the debit side of the cash book on the credit side of contra entry in three column cash book the cash book as a contra entry in three column cash book contra entry in the cash book none of the above 26 the contra entry is passed only if double column cash book is prepared three column cash book is prepared single column cash book is prepared petty cash book. In a double column or a triple column cash book, a contra entry is such a transaction which affects both, the contra entry in three column cash book debit and credit, sides of the cash book. For example when we draw cash from bank for business purpose, the entry would contra entry in three column cash book be passed as such: cash a/ c dr. Xxxx to bank a/ c xxxx this is a contra entry. Advertisements: here we detail about the twenty special business transactions which needs special treatment in double column cash book! ( i) contra transactions: when a single transaction affects both cash and a bank column with the same contra entry in three column cash book amount then it is known as contra transaction. 3] three column cash books ( source: yourarticlelibrary) this cash book has the cash, the discount and additionally the bank columns in it. Since the development of banking most firms, these days prefer to deal in cheques or other such bills of exchange.
And so having a bank column contra entry in three column cash book in your cash book makes things concise and contra entry in three column cash book simpler to understand. Side in the cash book that is called contra entry for example cash a/ c dr to bank contra entry in three column cash book a/ c bank a/ c dr to cash a/ c contra entry is arised only on two times one is cash withdrawal and second is cash deposits in bank. Contra entries in cash book. A contra entry in the cash book is one which does not require further entries in other ledger accounts. This is because for the given transaction, both entries are made in the cash book itself, the transaction affecting both the cash account and the bank account.
This page contains solutions to bank column cash contra entry in three column cash book book numerical questions and solutions for the chapter 4 recording of transactions – ii. If you’ re looking for solutions to other theoretical questions or other contra entry in three column cash book book related numerical questions solutions, you can find them at. Hstutorial double columns cash book, also known as two columns cash book. In this video, you will learn how to treat a contra entry in the cash book. Never miss a tutorial video - subscribe to.
In the three column cash book there will be some cross or contra entries i. , transfer of money from cash to bank ( amount deposited) and vice versa ( amount withdrawn from bank for office use). In all such cases both entries occur in the cash book and no ledger contra entry in three column cash book entry is required. A three column cash book or treble column cash book is one in which there are three contra entry in three column cash book columns on each side – debit and credit side.
One is contra entry in three column cash book used to record cash transactions, the second is used to record bank transactions and third contra entry in three column cash book is used to record discount received and paid. A three column cash book or treble column cash book is one in which contra entry in three column cash book there are three columns on each side - debit and credit side. Contra entries transactions recorded in three column cash book which relates to both cash and bank account ( i. Balance of one will decrease and other will increase), such transactions are entered on both sides of the cash book and are known as contra entry.
( c) means contra entry, these entries are not posted in ledger. In case of cash and bank accounts cash books works as ledger. Goods bought from ashok are on credit hence they will be entered in purchase book. Goods sold to mohan on credit for rs.
2 will be entered in sales book. Cash book, pass book, bank reconciliation statement dr. Jyotsna sethi, rekha rani structure 14. 1 introduction 14.
4 types of cash book 14. 1 simple cash book 14. 2 two column cash book 14. 3 three column cash book 14. 5 petty cash book. Imprest system of petty cash book.
Cash book: a cash book is a financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general. Three- column cash book: in modern times, contra entry in three column cash book banking habit has become so widespread and is so convenient and safe that a large number contra entry in three column cash book of payments contra entry in three column cash book of big concerns are made and received through cheques. In such cases, the cash book with bank column in addition to the cash and discount columns is found convenient. The cash book which has contra entry in three column cash book two column i. Cash in both sides contra entry in three column cash book it is called two column cash book. ( 11) define three column cash book? That book which has three column discount, cash and bank in both sides it is called three column cash book. ( 12) what is contra entry? That entry which is recorded both side of the three column cash.
There are two types of cashbooks, and they are the 2- column contra entry in three column cash book cash book and the 3- column cashbook. Before going into details of the types of cash book, let’ s first look at a peculiar transaction that occurs in the cash book. This transaction contra entry in three column cash book is the contra entry transaction. The three column cash book consists of 3 columns one with the first one being contra entry recording and the other 2 being the bank and the cash columns, when cash is deposited in to the bank or. C) cash book reports a bank balance on that date of £ 11, 420. Deposits awaiting clearance amount to £ 29, 460. Any difference may be attributed to credit transfers from customers and standing order payments not recorded in the cash book. This can be passed only in three column cash book. Some transactions are recorded in three column cash book. Which relates to both cash contra entry in three column cash book & bank.
That is called contra entry this can be denoted by puttting ' c" on both the sides of the cash book. Three column cashbook: all the enterprise makes of the payments and receipt through bank it is useful to provide a bank column o the receipt as well as payment side of the cash book this helps the cashier to record cash and bank transaction in one book this type of cash book is called as three column cash book. Advertisements: here we detail about the three types of cash book, i. , ( 1) simple cash book, ( 2) two column cash book, and ( 3) petty cash book. Simple cash book: simple cash book contains only one amount column on each side ( debit and credit) for recording cash receipts and cash payments. 1) contra entry means double entry like when cash deposit in bank. Bank column debit side and cash column credit site. 2) when goods purchased on cash credit to cash book and goods acct will debited. 3) when cash received then cash book debit and other will credit all this example is called double entry and contra entry. When a cash book is maintained, contra entry in three column cash book cash transactions are not recorded in the journal, and no cash or bank account is required to be maintained in the ledger as cash contra entry in three column cash book book serves the purpose of cash account. Cash book : types and preparation cash books may contra entry in three column cash book be of the following types: l simple cash book l bank contra entry in three column cash book column cash book l petty cash book lll.
In case a transaction affects both the cash and the bank account, a contra entry is recorded. There are 3 types contra entry in three column cash book of a cash book. Single column cash book. Also known as a simple cash book or a one column cash book, a single column cash book contra entry in three column cash book has one relevant column on each side which shows the simple “ receipts” and “ payments” of cash. The triple column cash book ( contra entry in three column cash book also referred to as three column cash book) is the most exhaustive form of cash book which has three money columns on both receipt ( dr) and payment ( cr) sides to record transactions involving cash, bank and discounts.
The cash columns are balanced as usual. The discount columns are just totaled and not contra entry in three column cash book balanced. See the procedure on double column cash book page. Posting three column cash book to ledger accounts. The method of posting a three column cash book into ledger is as follows: the opening balances of cash book are not posted. Since, cash account and bank account appear in cash book; both the aspects can be entered in the cash book.
When cash is drawn, cash comes in and is debited in the cash book in cash column as “ to bank” and contra entry in three column cash book credit in cash book in bank column as “ to cash”. This is a contra entry. Cash book: in cash book, we will record the all- cash transaction of the business. This book keeps all cash payment and cash receipts.
It is the book of original entries because first of all, we record the all- cash transaction in this book and t. The contra entry is an entry which involves a cash account and a bank account and which is recorded on both debit and credit sides of contra entry in three column cash book the double column cash book at the same time. This entry is not posted to any ledger account because both debit and credit aspects of transaction are handled within the cash book and the double entry work is. Three column cash book problems pdf download. Problem 1: on ap, hassan sajjad store cash book showed debit balances of cash rs. 1, 550 and bank rs. The contra entry in three column cash book above amount is recorded in the bank column ( debit) side of the double column cash book. A contra entry is also used in the intercompany netting to offset receivables and payables between 2 different legal entities/ subsidiaries of a company so that one final ( net) amount remains.
Three column cash book questions and answers three column cash book is a book where company maintain the records of cash and bank transactions. It contain of 3 column cash, bank and discount. Answers were sorted based on user' s feedback. Answer # 1, three colomn cash book means it includes 3 columns such as bank, cash and discount.