FINANCIAL ACCOUNTING SSS1 SECOND TERM              

WEEK 3 &4

THREE COLUMN CASHBOOK

Performance Objectives

Students should be able to:

1. State four features of each of the following  (a) Trade Discounts     (b) Cash Discounts
2. List five reasons why a trader will grant a discount to his customers

Contents

Three-Column Cash Book

This type of Cash Book combines the discount column on both sides with the cash and bank column. The discounts allowed column is on the debit side, while the discounts received column is on the credit side. The principle of double entry is also applicable in the three-column Cash Book. It must be noted however that the discount allowed and the discount received columns though they have the appearance of account columns, are merely memoranda, from them we can obtain periodic totals that will be entered.... View More