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What is a cash book? And the description of double column cash book and triple column cash book

1 What is a cash book?

  You know the cash account is the process of recording the cash account and the bank account together, but do you know why these two accounts should be recorded together and why the discount account is included? We will see the answer on this page

2 Why a triple column cash book account is prepared?

Cash book users

The cash book is often used by merchants, especially the distributor & retailers. the company often does not use this account because the company's transaction takes place through the bank.

A company needs a distributor to sell goods on credit: Let's see in detail!

Well, let's look at an example to learn about discounts.

A mobile phone production company exports 100 000 mobile phone to a private distributor in India and their own stores for $ 900 per unit, which will be in credit and the money will be sent to the in mobile phone company after the mobile phones is sold.

Another example is when a private distributor imports 5000 mobile phones and sold 3000 mobile phones in 4 months and after 4 months the mobile phone company offers a 17% discount to distributors in India. The mobile phone then cost $ 747.

journey train-journal-image

Please understand this paragraph clearly because it is important

We usually recording the discount on a profit & loss account but distributors should not record this 17% discount on their profit & loss account especially if they do not recording this 17% discount on any account other than the cash book, This price reduction (trade discount) will only be recorded in the consumer receipt (bill) and cash book.

Understand one thing, even if you buy an item on the market or on the Internet, its MRP price does not change, so do not change the price of the item on the purchase account or sales account.

gross profit-net profit-profit and loss account


bank A/C D
( 670 * 747 )
cash discount A/C
( 6,03,000*17/100 )D
to sales A/C
( 670 * 900 )
670 mobile phone sold with a 17% discount
Triple column cash book triple column cash book
-sales the mobile phone 7,00,00020,00,000-Paid to mobile phone production company
3000 * 900
-Commission received
3000 * 10

Posts after 4 months

-sales the mobile phone 2,46,5105,00,490-Paid to mobile phone production company
1000 * 747
-Received a 17% discount from the mobile phone company
9,00,000 * 17/100
1,53,000-The retailer was offered a 17% discount
1000 * 153
-Commission received
1000 * 10

Half yearly report

-Cash on hand 9,46,510-Cash on hand -
-Cash on bank 25,40,409-Cash on bank 34,47,000
-Discount was granted (+)1,53,000-Discount received (+)1,53,000
- -closing balance 40,000
-Debit balance 36,40,000-credit balance 36,40,000
-opening balance 40,000-

3 Why a double column cash book account is prepared?

human behavior

For example, suppose you have a small shop where a customer buys goods for $ 32, for which he pays $100 on a single note, and you pay $ 78 through a banking service because you have no retail, Now that the bank account is down to $ 78, an accountant knows the money has not gone out, but the store owner will not immediately have that understanding and will regret having his bank account reduced, so The cash account and the bank account are communicated together when the owner is informed of the cash balance to avoid such feelings.

We hope you understand the answer to the first question

If you have any doubts please post below, and if you need answers to any questions, Please email


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