Example

The John trading company has undertaken the following transactions during the month of May
2016.

Year: 2016
May 01: Cash balance $2,200, bank overdraft $365.
May 03: Paid J & Co. by check $1,200, discount received from him $15.
May 05: Received from A & Co. a check for $980, discount allowed to them $20.
May 07: Deposited into bank the check received from A & Co. on May 05.
May 10: Purchased stationary for cash, $150.
May 15: Purchased merchandise for cash, $1,300.
May 15: Cash sales for the first half of the month, 2,350.
May 16: Deposited into bank $1,600.
May 18: Cash withdrawn from bank for personal expenses $150.
May 19: Issued a check for merchandise purchased, $1,650.
May 21: Drew from bank for office use, $650.
May 24: Received a check from S & Sons and deposited the same into bank, $1,560.
May 25: Paid a check to Ali Inc. for $400 and received a discount of $15.
May 27: Bought furniture for cash for office use, $390.
May 29: Paid office rent by check, $450.
May 30: Cash sales for the second half of the month $4,300.
May 31: Paid salaries by check $1,760.
May 31: Withdrew from bank for office use $1,470.

Required: Record the above transactions in a three/triple column cash book.

Solution
Example:
From the following particulars write up a Three Column Cash Book of Mr. Naseem.

2005 $
May 1: Cash in hand 40,000
May 1: Cash at Bank 30,000
May 3: Goods sold for cash 9,000
May 5: Goods bought for cash 18,000
Received a cheque from M. Farooq for $19,300 in full settlement of his dues $19,600 and
May 8:
deposited into the bank.
Paid to Zulfiqar Cash $10,000 and a cheque for $9,400 in full settlement of his dues
May 11:
$20,000
May 15: Cash received from M. Kaleem $9,800 in full settlement of his dues $10,000
May 17: Paid cash to Adnan $3,900 in full clearance of his dues $4,000
May 20: Received a cheque from Asim Tufail $7,800 in full settlement of his dues $8,000
 Asim Tufail's cheque endorsed to a creditor Akif in settlement of
May 23:
$8,100
May 25: Bank credited interest 1,000 1,000
May 31: Bank debited bank charges . 1,400 1,400

Solution:

Three Column Cash Book

Discount
Partic V/ L/ Discount Cash Bank Partic V/ L/ Cash Bank
Date Date Received
ulars N F Allowed $ $ $ ulars N F $ $
$
1.5. Balanc 40,000 30,000 5.5. Purcha 18,000
05 ed b/d 05 se A/c
3.5. Sales 9,000 11.5 Zulfqa 600 10,000 9,400
05 A/c .05 r A/c
8.5. M.Faro 300 19,300 17.5 Adnan 100 3,900
05 oq A/c .05 A/
15.5 M 200 9,800 23.5 Akif 300 7,800
.05 Kalee .05 A/c
m A/c
20.5 Asim 200 7,800 31.5 Bank 1,400
.05 Tufail .05 charge
A/c s A/c
25.5 Intere 1,000 31.5 Balanc 26,900 39,500
.05 st A/c .05 e c/d

700 66,600 50,300 1,000 66,600 50,300

Note: The Discount columns are not balanced. The two Discount columns are simply totaled
and posted to Discount Allowed A/c and Discount Received A/c in the Ledger.

Discount Allowed A/C

31.5.2005 Sundry Discount A/C 700

as per cash book

Discount Received A/C

31.5.2005 Sundry Discount A/C 1,000

as per cash book

Problem 1:
On April 1, 2017, Hassan Sajjad Store Cash Book showed debit balances of Cash Rs. 1,550
and Bank Rs. 13,575. During the month of April following business was transacted. You
are required to prepare Cash Book?

April 2017
02 Purchased Office Type-Writer for Cash Rs. 750; Cash Sales Rs. 1,315.
07 Deposited Cash Rs. 500 to bank.
10 Received from A. Hussain a check for Rs. 2,550 in part payment of
his account (not deposited).
16 Paid by check for merchandise purchased worth Rs. 1,005.
20 Deposited into Bank the check received from A. Hussain.
22 Received from customer a check for Rs. 775 in full settlement of his accounts (not
deposited).
24 Sold merchandise to sweet Bros. for Rs 1,500 who paid by check which was
deposited into bank.
26 Paid creditor a Salman Rs. 915 by check.
28 Deposited into Bank the check of customer of worth Rs. 775 was dated 22nd April.
29 Paid wages by cash Rs. 500 and salary Rs. 1,000 by bank.
30 Drew from Bank for Office use Rs. 250 and Personal use Rs. 150.

Solution: