Teorema del disco

This type of Cash Book is an improvement over the Double Column Cash Book. In modern times, it is virtually impossible to imagine any business without having dealings with a bank. Most of the transactions relating to receipts and payments of money are made through cheques. So transactions through bank are also recorded in the cash book by adding one more column i.e. bank column on both sides of the cash book. Therefore there are three columns on both sides of the cash book i.e. cash, bank and discount columns. That is why this type of cash book is known as Triple Column Cash Book.

Receipt side (Dr side) of the Triple Column Cash Book is used to record all receipts both in cash and by cheques as also to record the discount allowed to our debtors while receiving the payment. Cash receipts are entered in the cash column whereas amounts received by cheques are entered in the bank column and discount allowed in the discount column. Posting from the debit side of the cash book is made to the credit side of each account in the ledger– in case of personal accounts credit is to be given for cash or cheques received plus discount allowed.

Payment side (Cr. side) of the Cash Book is used to record all payments both in cash and through cheques as also to record the discount received or availed by us from over creditors while making payment to them. Cash payments are recorded in the cash column, payments through cheques are entered in the bank column and discount received in the discount column. Posting from the credit side of the cash book is made on the debit side of respective accounts– in case of personal accounts debit is to be given for the total of the payments made and discount received.

After recording all the relevant transactions in the Cash Book, all the columns of the Cash Book are totalled. The difference in the cash columns is put on the credit side of Cash Book in the column by writing “By Balance c/d”. The bank balance may have a debit balance or a credit balance. If the total of the debit side of the bank column is more than the total of the credit side of the bank column, it has a debit balance and if the total of the credit side is more than that of the debit side, then it has a credit balance (overdraft). However, the difference is put on the lesser side. There is no need to balance the discount columns. The discount columns of both the sides are totalled.

In the Triple Column Cash Book there will be some cross or contra entries i.e., 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 entry is required. This is indicated by a contra sign (C) in the folio column indicating thereby that the double entry aspect of this transaction is complete and it requires no posting to the ledger.

Illustration 3: Prepare a Triple Column Cash Book from the following particulars:

Jan. 1. Cash in hand Rs. 50,000. 2. Paid into bank Rs. 10,000.

3. Bought goods from Hari for Rs. 200 for cash.

4. Bought goods for Rs. 2,000 paid cheque for them, discount allowed 1%

5. Sold goods to Mohan for cash Rs. 250.

6. Received a cheque from Shyam to whom goods were sold for Rs. 800. Discount allowed 12.5%

8. Purchased an old typewriter for Rs. 200. Spent Rs. 50 on its repairs.

9. Bank notified that Shyam’s cheque has been returned dishonoured and debited to the account in respect of charges Rs. 10.

10. Received a money order for Rs. 25 from Hari.

11. Shyam settled his account by means of a cheque for Rs. 820, Rs. 20 being for interest charged.

12. Withdrew from bank Rs. 10,000.

18. Discounted a bill of exchange for Rs.1,000 at 1% through bank.

20. Honoured our own acceptance by cheque Rs. 5,000. 22. Withdrew for personal use Rs. 1,000.

24. Paid trade expenses Rs. 2,000.

25. Withdrew from bank for private expenses Rs. 1,500.

26. Purchased machinery from Rajiv for Rs. 5,000 and paid him by means of a bank draft purchased for Rs. 5,005.

27. Issued cheque to Ram Saran for cash purchase of furniture Rs. 1,575.

28. Received a cheque for commission Rs. 500 from R. & Co. and deposited into bank.

29. Ramesh who owned us Rs. 500 became bankrupt and paid us 50 paisa in a rupee.

30. Received payment of a loan of Rs. 5,000 and deposited Rs. 3,000 out of it into bank.

31. Paid rent to landlord ‘Mohan’ by a cheque of Rs. 500. 31. Interest allowed by bank Rs. 30.

Solution

TRIPLE COLUMN CASH BOOK

Dr. Cr.

Date Particulars

(Receipts) L.F. Discount (Rs.) Cash (Rs.) Bank (Rs.) Date Particulars (Payments) L.F. Discount (Rs.) Cash (Rs.) Bank (Rs.)

2006 2006

Jan 1 To Balance b/d 50,000 Jan 2 By Bank A/c C 10,000

Jan 2 To Cash A/c C 10,000 Jan 3 By Purchases A/c 200

Jan 5 To Sales A/c 250 Jan 4 By Purchases A/c 20 1,980

Jan 6 To Shyam’s A/c 100 700

Jan 8 By Typewriter A/c 200

Jan 10 To Hari’s A/c 25 Jan 8 By Typewriter A/c 50

Jan 11 To Shyam’s A/c 800 Jan 9 By Shyam’s A/c 100 700

“ To Interest A/c 20 Jan 9 By Bank charges A/c 10

Jan 12 By Cash A/c C 10,000

Jan12 To Bank A/c C 10,000 Jan 20 By B/P A/c 5,000

Jan 18 To B/R A/c 10 990 Jan 22 By Drawings A/c 1,000

Jan 28 To Commission A/c 500 Jan 24 By Trade Expenses A/c 2,000

Jan 29 To Ramesh’s A/c 250 Jan 25 By Drawings A/c 1,500

Jan 30 To Loans A/c 5,000 Jan 26 By Machinery A/c 5,000

Jan 30 To Cash A/c C 3,000 Jan 26 By Bank charges A/c 5

Jan 31 To Interest A/c 30 Jan 27 By Furniture A/c 1,575

Jan 31 To Balance c/d 10,280 Jan 30 By Bank A/c 3,000

(Bank overdraft) Jan 31 By Rent A/c 500

Jan 31 By Bank charges A/c 50

Jan 31 By Balance c/d 49,075