The discount columns are memorandum columns in nature.The discount allowed and discount received columns represent two different accounts.The discount allowed column is located on the debit side and the discount received column is located on the credit side.Discount Columns: Key PointsĬonsider the following critical aspects of discount columns in a triple column cash book: One column records cash receipts and payments, the second records banking transactions, and the third records discounts received and allowed.Īlthough single and double column cash books are alternatives to a cash account, the three column cash book serves the purpose of cash as well as a bank account. In a three column cash book, three columns are provided for the amounts on each side. This is the reason why discount columns are also provided in the cash book. You may remember that cash and discounts are closely related. On the other hand, if debtors pay early, a discount may be allowed to them. For example, if cash is paid early, creditors may receive a discount. It is customary for businesses to allow discounts for early payments. If a business holds a bank account frequently makes receipts and payments through that bank account, then it is useful to maintain a three column cash book rather than a single or double column cash book. A three column cash book, also known as a triple column cash book, contains three money columns on both the debit and credit sides: one on each side for recording discount, cash, and bank amounts.

Meaning bank memoranda