Give two reasons why a three column cashbook is used both as a journal and a ledger

      

Give two reasons why a three column cashbook is used both as a journal and a ledger

  

Answers


Davis
i) Cash and bank column in the cash book act as a ledger and total balances are used to prepare trial
balance like other ledger accounts
ii) Both discount allowed and discount received columns act as journal and their total balances are
transferred to the ledger.
iii) Cash transactions are entered in the three column cashbook directly as they occur
Githiari answered the question on September 23, 2017 at 09:34


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