Accounting·Basic accounting systems · NSSCO 2.2
The three-column Cash Book
Narrated lesson · press play
The Cash Book is where a business tracks every dollar moving through its cash and its bank. In this lesson we meet the bank accounts and payment methods a business uses, the deposit slip and receipt, and then build a real three-column Cash Book together — Discount, Cash and Bank on each side. We'll tell cash discount apart from trade discount, enter a month of transactions, balance the book, handle a bank overdraft, and post it all to the ledgers.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.2):
- State the types of bank accounts
- Explain payments through the banking system (standing order, direct debit, credit transfer)
- Complete a deposit slip and receipt and explain their uses
- Explain the dual function of the Cash Book as a book of first entry and as a ledger account for cash and bank
- Describe the types of Cash Books (two column, three column)
- Differentiate between cash and trade discounts
- Record transactions in the three column Cash Book and balance it
- Explain the term bank overdraft
- Prepare Cash Books including a bank overdraft
- Complete the double entry to the accounts in the Ledgers
Loading your lesson…
You're watching a free 3-minute preview — create a free account to keep going.
Quick revision
Revise this in 5 minutes
Ms Pieters and Mike talk through the whole topic — with the figure and working drawn live.