THREE COLUMN CASH BOOK (PART 1)
A three-column cash book is a financial record that combines three separate columns for cash, bank, and discount transactions. It serves as a detailed ledger for managing cash flows, bank transactions, and discounts received or allowed. Key features include:
- Cash Column: Records all cash receipts and payments.
- Bank Column: Tracks transactions involving bank accounts, including deposits and withdrawals.
- Discount Column: Captures trade discounts allowed to customers or received from suppliers.
The cash book functions as both a journal and ledger, ensuring efficient and accurate tracking of financial activities while simplifying the preparation of final accounts.