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Triplethree Column Cash Book Accounting for Management  Form

Triplethree Column Cash Book Accounting for Management Form

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now we are discussing the three column cash book the three column cash book represents three accounts cash bank and discounts combined into one book it follows the same principle as that of the two column cash book in this type of cash book discounts allowed and discounts received will be introduced since cash discount is given as inducement to the customers to settle their accounts promptly there must be a column for discounts allowed on the debit side and discount received column on the credit side note that only cash discounts will be recorded in the account discount allowed and discount received discount allowed this is the discount given to the customers for prompt payment of their accounts it must be treated as an expense and hence debited to discount allowed and credited to the personal account of the customers discount received this is the discount received from suppliers for prompt payment of our accounts it is treated as revenue and hence it is credited to the discount receiv

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