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Continue of subsidiary book 3..
II. Double Column Cash Book: A cashbook with discount column is called double column cashbook. Two accounts, cash and discount are combined in this book. Discount allowed to the customers represent loss. So it is recorded in discount column on debit side. In the same way discount allowed by creditors represents gain. So it is recorded on credit side in discount column.
Form of double column cashbook:
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Particular
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L.F
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Discount
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Amount
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Date
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Particular
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L.F
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Discount
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Amount
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III. Triple Column Cash Book: A cash book with discount and bank column is triple column cashbook. Three accounts are combined. In business firm most of the payment are received and paid by cheque. Transactions are preformed through bank. When business firm makes payment its creditor by cheque then such payment are entered on credit side in bank column. In the same way when amounts are deposited into bank and received cheque from debtors amounts are posted on debit side in bank column. The advantage of this cashbook is that every time business firm can know amount discharged from the bank.
Form of triple column cashbook
Date
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Particular
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L.F
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Discount
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Amount
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Bank
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Date
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Particular
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L.F
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Discount
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Amount
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Bank
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END