SHOW ME HOW TO DO A LEDGER SERIAL NUMBER

The procedure of posting entries from a cash book to ledger accounts has been explained in single column cash book article. The discount columns on both receipt and payment sides are only totaled and not balanced. Posting a three column cash book to ledger accountsĪs explained earlier in this article, only cash and bank columns of triple column cash book work as accounts and are therefore balanced. This column is also totaled and balanced like a ledger account. Bank: The amount of all receipts and payments made by the bank account are entered in bank column of the cash book.This column is totaled and balanced like a ledger account. Cash: The amount of cash received (net of any discount allowed) is entered on the debit side and the amount of cash paid (net of any discount received) is entered on the credit side in cash column.

Discount: The amount of discount allowed is recorded on debit side and the amount of discount received is recorded on credit side in discount column.The totals of debit column and credit column are posted to discount allowed account and discount received account respectively.The number each ledger account that is written in description column is entered in PR column. Posting reference (PR): Each account in the ledger is assigned a unique numbered.

SHOW ME HOW TO DO A LEDGER SERIAL NUMBER

The serial number of the voucher is entered in this column.

Voucher number (VN): A voucher is a document in support of a transaction.

Description: The description column is used to write the name of the account to be debited or credited in the ledger as a result of cash or bank transaction.Date: The date column is used to enter the transaction date.

The purpose of each column is briefly explained below: The triple column cash book has 7 columns on both debit and credit sides. The format of a triple/three column cash book is given below: The total of discount column on credit side represents the total cash discount received from suppliers during the period and is posted to the discount received account maintained in the ledger.ĭiscount allowed is an expense and discount received is an income of the business. The total of discount column on debit side of cash book represents the total cash discount allowed to customers during the period and is posted to the discount allowed account maintained in the ledger. In general ledger, two separate accounts are maintained for discount allowed and discount received. It is not balanced because it does not work as an account. The cash and bank columns of triple column cash book are used as accounts and are periodically totaled and balanced just like in case of a double column cash book. The only difference between two types of cash book is that a double column cash book has two money columns (i.e., cash and bank) whereas a triple column cash book has three money columns (i.e., cash, bank and discount). The procedure of recording transactions in a triple/three column cash book is similar to that of a double column cash book. A triple column cash book is usually maintained by large firms which make and receive payments in cash as well as by bank and which frequently receive and allow cash discounts. The triple column cash book (also referred to as three column cash book) is the most exhaustive form of cash book which has three money columns on both receipt (Dr) and payment (Cr) sides to record transactions involving cash, bank and discounts.

Show me how to do a ledger