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Fundamentals of Financial and Cost Accounting · Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement

Single, Double and Triple Column Cash Book Explained

Updated 10 October 2026 · Fact-checked

A cash book is a book of original entry that records all cash receipts on the debit side and payments on the credit side. A double column version adds a discount or bank column, and a triple column adds both. Record each transaction, mark contra entries, then balance each column.

Understand Cash Book: Single, Double and Triple Column

A cash book records every cash receipt and payment in date order. It is a journal and a ledger account together. Receipts go on the debit (left) side. Payments go on the credit (right) side.

A single column cash book has one amount column on each side, for cash only. Its balance is always a debit balance, because you cannot pay out more cash than you have.

A double column cash book has two amount columns on each side. The standard forms are Cash and Bank, or Cash and Discount. A triple column cash book has Discount, Cash and Bank columns on each side.

Discount allowed is given to customers who pay early, so it is a loss and goes on the debit side. Discount received is given to you by suppliers, so it is a gain and goes on the credit side. The discount columns are not balanced like cash. You only total them. The discount is not posted item by item. You post the totals: the debit-side total to Discount Allowed Account (Dr) and the credit-side total to Discount Received Account (Cr).

A contra entry is a transaction where both the debit and credit are in the cash book itself. Cash deposited into the bank is debited in the Bank column and credited in the Cash column. Cash withdrawn from the bank is the reverse. Mark contra entries with the letter C in the folio column. They are not posted to any ledger.

A cash book is not the same as a cash account. A cash account is a ledger account for cash only. A cash book is a book of original entry, so you do not journalise a transaction before entering it. It can also carry bank and discount columns.

Key formulas to remember

Closing cash balance
Closing cash = Opening cash + Cash receipts − Cash payments
Always a debit balance. A credit cash balance signals an error.
Closing bank balance
Closing bank = Opening bank + Bank receipts − Bank payments
A credit balance means an overdraft. It arises when bank payments exceed bank receipts, so the credit total exceeds the debit total. The difference is entered on the debit side as 'To Balance c/d' to make the totals agree. It represents an overdraft, which is a credit balance in the books. An opening overdraft is the item placed on the credit side.
Discount allowed entry
Debit side: Discount column. Cash received = Amount due − Discount allowed
Total posted to the debit of Discount Allowed Account. It is an expense or loss.
Discount received entry
Credit side: Discount column. Cash paid = Amount due − Discount received
Total posted to the credit of Discount Received Account. It is a gain.
Contra entry rule
Cash deposited: Dr Bank column, Cr Cash column. Cash withdrawn: Dr Cash column, Cr Bank column
Both sides are in the cash book. Mark C, and do not post to the ledger.
Balancing rule
Balancing figure = Larger side total − Smaller side total
Put it on the smaller side as 'By Balance c/d' or 'To Balance c/d'. Discount columns are only totalled, not balanced.

How to solve Cash Book: Single, Double and Triple Column questions

Use this method for any cash book question. It keeps cash, bank and discount from getting mixed up.

  1. 1Rule the format: Date, Particulars, L.F., Discount, Cash, Bank on both sides.
  2. 2Enter the opening balances. Cash balance goes on the debit side. A bank balance per books goes on the debit side, and an overdraft goes on the credit side.
  3. 3Read each transaction and decide: receipt (debit) or payment (credit). Then decide whether it goes in the Cash column or the Bank column.
  4. 4Enter discount in the Discount column on the same side as the receipt or payment. Enter only the net amount in Cash or Bank.
  5. 5Spot contra entries, such as deposits into the bank and withdrawals from it. Enter them on both sides and mark C.
  6. 6A cheque received is generally entered in the Bank column when it is deposited the same day. If the question says it is not yet deposited, follow the question's instruction. Some treat it as cash in hand, so do not treat this as a fixed rule.
  7. 7Total each side of the Cash and Bank columns. Find the balancing figures and carry them down. Total the discount columns separately.
  8. 8Check that the cash balance is a debit. Check that each pair of totals agrees.

Quickest way: Column-first scan for MCQs

When to use it: Use this when an MCQ asks for a closing cash or bank balance, or for total discount.

  1. Do not draw the full book. Make three running totals: cash, bank and discount.
  2. Add every receipt to the matching column. Subtract every payment.
  3. For a receipt with discount, add only the net amount. Add the discount to the discount allowed total.
  4. For a contra entry, subtract from one column and add the same amount to the other.
  5. Finish with the closing balance. Check that the cash balance is not negative.

Common mistakes in Cash Book: Single, Double and Triple Column

  • Entering the full invoice amount in the Cash column when discount is given.

    Students forget that discount is a separate column and not part of cash.

    Fix: Enter the net cash in Cash or Bank. Enter the discount in the Discount column on the same side.

  • Putting discount allowed on the credit side.

    Students confuse the person giving the discount with the side it belongs to.

    Fix: Discount allowed is a loss to you, so it is on the debit side. Discount received is a gain, so it is on the credit side.

  • Posting contra entries to the ledger.

    Students treat them like normal transactions.

    Fix: Both sides are already in the cash book. Mark C in the folio column and do not post.

  • Balancing the discount columns like cash.

    Students see three columns and assume all three are treated alike.

    Fix: Only total the discount columns. Post the debit total to Discount Allowed and the credit total to Discount Received.

  • Putting a bank overdraft on the debit side.

    Students assume every opening balance is a debit.

    Fix: Overdraft means you owe the bank. An opening overdraft goes on the credit side. If bank payments exceed receipts, the closing overdraft is the balancing figure written on the debit side as 'To Balance c/d', and the next period's opening overdraft is brought down on the credit side.

Worked examples

Example 1

Prepare a triple column cash book from these: Opening cash ₹15,000 and bank ₹30,000. Received from Ravi ₹4,900 by cheque, discount allowed ₹100. Paid to Sunil ₹7,600 in cash, discount received ₹400. Deposited cash ₹5,000 into the bank. Withdrew ₹2,000 from the bank for office use. Find the closing cash and bank balances.

Show the solution
  1. Debit side: opening cash ₹15,000 and bank ₹30,000.
  2. Ravi: debit Bank ₹4,900 and Discount ₹100.
  3. Sunil: credit Cash ₹7,600 and Discount ₹400.
  4. Deposit of ₹5,000 is a contra entry. Debit Bank ₹5,000 and credit Cash ₹5,000.
  5. Withdrawal of ₹2,000 is a contra entry. Debit Cash ₹2,000 and credit Bank ₹2,000.
  6. Cash column: debit total = 15,000 + 2,000 = ₹17,000. Credit total before balance = 7,600 + 5,000 = ₹12,600. Closing cash = 17,000 − 12,600 = ₹4,400 Dr.
  7. Bank column: debit total = 30,000 + 4,900 + 5,000 = ₹39,900. Credit total before balance = ₹2,000. Closing bank = 39,900 − 2,000 = ₹37,900 Dr.
  8. Discount column: debit side ₹100 (allowed) and credit side ₹400 (received). These are only totalled and posted.

Answer: Closing cash is ₹4,400 Dr and closing bank is ₹37,900 Dr. Discount allowed is ₹100 and discount received is ₹400.

Example 2

A trader had cash ₹20,000 and bank ₹50,000 at the start of the month. He sold goods to Mehta for ₹9,800 cash, paid rent ₹3,000 by cheque, received ₹14,700 by cheque from Iyer after allowing discount of ₹300, paid Kumar ₹7,600 by cheque after getting discount of ₹400, and deposited ₹10,000 cash into the bank. Find the closing cash and bank balances.

Show the solution
  1. Cash column debit side: opening ₹20,000 plus sales ₹9,800 = ₹29,800.
  2. Cash column credit side: deposit ₹10,000 (contra).
  3. Closing cash = 29,800 − 10,000 = ₹19,800.
  4. Bank column debit side: opening ₹50,000, Iyer ₹14,700 and the contra deposit ₹10,000. Total = ₹74,700.
  5. Bank column credit side: rent ₹3,000 and Kumar ₹7,600. Total = ₹10,600.
  6. Closing bank = 74,700 − 10,600 = ₹64,100.
  7. Discount allowed ₹300 is on the debit side. Discount received ₹400 is on the credit side.

Answer: Closing cash is ₹19,800 and closing bank is ₹64,100, both debit balances. Discount allowed is ₹300 and discount received is ₹400.

Exam tips

  • Practise reading transactions for the side first. Receipt is debit and payment is credit, whatever the column.
  • In MCQs, look for discount trick options. A wrong answer often adds discount to the cash balance.
  • If a question says 'cheque deposited into bank', enter it in the Bank column. If it says the cheque is not yet deposited, follow the instruction given in the question. Some treat it as cash in hand, so do not assume a fixed rule.
  • Remember the contra rule. A transaction that appears on both sides of the cash book is never posted to the ledger.
  • Check the sign of your closing cash. A credit cash balance means you made an error.

Practice questions from Cash Book, Bank Book, Petty Cash Book, Bank Reconciliation Statement

Cash Book: Single, Double and Triple Column: frequently asked questions

What is the difference between a cash book and a cash account?

A cash account is only a ledger account, so entries must first go through the journal. A cash book is a book of original entry and also acts as the cash ledger. It may also have bank and discount columns.

What is a contra entry in a cash book?

A contra entry is a transaction where the debit and credit both fall in the cash book, such as depositing cash into the bank. You write the entry on both sides and mark it C in the folio column. It is not posted to any ledger account.

Why is the discount column not balanced?

Discount is not cash, so there is no balance to carry forward. You only total each discount column. The debit total is posted to Discount Allowed Account (Dr) and the credit total to Discount Received Account (Cr).

Can the cash balance in a cash book be a credit balance?

No. You cannot pay out more cash than you hold, so the cash column always has a debit balance or zero. A credit balance means an entry is wrong. The bank column can have a credit balance, which is an overdraft.