A three column cash book is used to clearly separate and cash transactions, bank transactions and any discount that has been paid or received. They are used to help traders keep track of their deposits and withdrawals. It gives a breakdown of expenses and savings at a glance and can be very advantageous to businesses.
How to make a three column cash book for your transaction is as follows:
• Opening balance. To begin, you should but the balance that you begin with, if you have any at all, of cash in hand or in the bank in the cash column of your table. In the event of your opening balance being part of an overdraft and therefore credit, this should be placed in the credit column of your book.
• Received cash or checks. Recording cash that you have received is relatively simple. When you receive cash during the business day, this should be recorded in the cash column of your book. In the event of you receiving a check and you are able to cash it with the bank on the same date, then you should record the amount that you have received in the credit column of your book. However, if you are not able to do this then record the money you receive in the cash section of your three column cash book.
• Paying by cash or by checks. Any money that you pay by cash should be recorded in the cash section of your book. Any money that you pay using a check should be recorded in the credit side of your book. It is always a good idea to state the name of the person who has deposited these checks in the interest of security and organization.
How to make a three column cash book for your transaction is as follows:
• Opening balance. To begin, you should but the balance that you begin with, if you have any at all, of cash in hand or in the bank in the cash column of your table. In the event of your opening balance being part of an overdraft and therefore credit, this should be placed in the credit column of your book.
• Received cash or checks. Recording cash that you have received is relatively simple. When you receive cash during the business day, this should be recorded in the cash column of your book. In the event of you receiving a check and you are able to cash it with the bank on the same date, then you should record the amount that you have received in the credit column of your book. However, if you are not able to do this then record the money you receive in the cash section of your three column cash book.
• Paying by cash or by checks. Any money that you pay by cash should be recorded in the cash section of your book. Any money that you pay using a check should be recorded in the credit side of your book. It is always a good idea to state the name of the person who has deposited these checks in the interest of security and organization.