how do we get to now about when to use bank column or discount column in double column cash book

Dear Student,

The transactions given in the question would help you determine whether to use Bank column or discount column in Cash Book or use all the three columns together;

If you have transactions in only cash and discount allowed or received & no Bank is involved then you would use Cash Book with discount column & when you have transactions between Cash & Bank then Cash Book with Bank column;

When you have transactions relating to all three i.e. Bank, Cash & Discount then three column Cash Book needs to be maintained;


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There is no column of discount in the double column cash book...there r just 2 columns bank nd cash..nd discount's entry is never done in the cash book, its only done in journal..
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