Question

The discount column of a triple column cash book records __________.

• A. Trade discount
• B. Cash discount
• C. Quantity discount
• D. Seasonal discount

Answer 1

The correct option is B Cash discount

Cash Book may have two or three columns. When only Cash and Bank are considered while making the cash book, its a two column cash book.

Some times in a business, creditors are allowing cash discount while purchasing the goods on cash basis or the organization is allowing a cash discount while making sales in cash. In such situations, one more column of cash discount is added in cash book. This is a triple column cash book.