AccountsISC Class 11 · Subsidiary Books and Cash Book

Triple Column Cash Book and Contra Entries: ISC Class 11 Accounts

Updated 17 October 2026 · Fact-checked

A triple column cash book has three amount columns on each side: discount, cash and bank. Cash received is debited and cash paid is credited; discount allowed is on the debit side and discount received on the credit side. A contra entry affects both cash and bank (deposit or withdrawal), so it appears on both sides with the letter C in the folio and is not posted to the ledger.

Understand Triple Column Cash Book, Contra Entries and Overdraft

Kinds of cash book. *Simple (single column):* only cash. *Double column:* cash and bank (or cash and discount). *Triple column:* discount, cash and bank. The cash book is both a book of original entry and a ledger (cash and bank accounts).

Rules. (1) Receipts of cash or cheque: debit the cash or bank column; the particulars name the account credited. (2) Payments: credit the cash or bank column. (3) Discount allowed to a customer: debit discount column; discount received from a supplier: credit discount column. (4) Discount columns are only memoranda: they are totalled and posted to Discount Allowed A/c (Dr) and Discount Received A/c (Cr); the discount is not part of cash or bank.

Contra entries. Cash deposited into the bank: debit Bank column, credit Cash column in the same line. Cash withdrawn from the bank for office use: debit Cash column, credit Bank column. Both sides are in the cash book, so no posting to the ledger (folio marked C).

Cheques. A cheque received and deposited on the same day is entered in the bank column; a cheque received but deposited later is entered in the cash column first, then a contra on deposit (as per the usual rule given in the question).

Balancing. Totals of cash and bank columns on the debit side exceed those on the credit side; balance c/d on the smaller side. An *overdraft* means the bank column on the credit side is larger; the balance c/d is written on the debit side and brought down as "By Balance b/d" on the credit side, shown as a liability.

Posting. Items not contra are posted to the ledger accounts named in the particulars. Total of discount allowed is debited to Discount Allowed; total discount received is credited to Discount Received.

Triple Column Cash Book, Contra Entries and Overdraft: key facts

Cash balance: Closing cash = Opening cash + Cash receipts - Cash payments | Cash column only; Never negative.
Bank balance: Closing bank = Opening bank + Bank receipts - Bank payments | Negative means an overdraft; Overdraft is a liability.
Discount columns: Discount allowed (Dr)
Discount received (Cr)
Totals posted to the discount accounts; Not added to cash or bank.

How to answer Triple Column Cash Book, Contra Entries and Overdraft questions

Enter each item on the correct side and column, then balance each column.

1Opening balances: cash and bank on the debit side.
2Enter each receipt and payment with the discount.
3Contra items appear in both columns on both sides.
4Total each column, balance cash and bank separately, and check.

Triple Column Cash Book, Contra Entries and Overdraft in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Contra entry

Suppose a shop owner deposits Rs 12,000 of the day's cash into the bank.

Which column is debited and which credited? Is it posted to the ledger?

Try it first, then show the solutionSolution

Bank column (debit) receives the money; cash column (credit) gives it up.
Both are in the cash book, so no ledger posting; the folio shows C.

Answer: Bank Dr, Cash Cr; no ledger posting.

Memory hook: Cash to bank: contra, both sides.

Tricks to remember Triple Column Cash Book, Contra Entries and Overdraft

Short memory aids. Say each one aloud once, then use it on a question the same day.

C = contra
Mark C in the folio and do not post.
Use it when: Contra.
Discount stays outside
Discount columns never add to cash or bank.
Use it when: Totalling.
Overdraft on the credit side
Bank overdraft: credit side is larger.
Use it when: Balancing.

Triple Column Cash Book, Contra Entries and Overdraft: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Contra · 1 mark · MCQBoard level

Cash deposited into the bank is recorded as:
(a) a contra entry (b) a journal entry (c) a purchase (d) a ledger entry

Try it first, then show the solutionSolution

Both cash and bank are in the same book.

Answer: (a) a contra entry

Example 2: Posting of discount · 3 marks · Short answerBoard level

Explain how the discount columns of a cash book are posted to the ledger. (3 marks)

Try it first, then show the solutionSolution

Total of the discount allowed column is debited to Discount Allowed A/c.
Total of the discount received column is credited to Discount Received A/c.
Individual discounts are posted to the personal accounts along with the cash.

Answer: Totals are posted: Discount Allowed Dr, Discount Received Cr; the personal accounts are credited or debited with the full amount.

Example 3: Triple column cash book · 9 marks · Long answerHarder board level

Prepare a triple column cash book: Jan 1 Cash 20,000, Bank 80,000. Jan 3 Received from Arun Rs 9,800 in cash, discount Rs 200. Jan 5 Paid Bhim Rs 7,350 by cheque, discount received Rs 150. Jan 8 Deposited Rs 12,000 into the bank. Jan 12 Withdrew Rs 5,000 from the bank for office use. Jan 15 Cash sales Rs 15,000. Jan 20 Paid rent Rs 6,000 by cheque. Jan 25 Paid salaries Rs 8,000 in cash. (9 marks)

Try it first, then show the solutionSolution

Cash debit: 20,000 + 9,800 + 5,000 + 15,000 = 49,800. Cash credit: 12,000 + 8,000 = 20,000. Balance 29,800.
Bank debit: 80,000 + 12,000 = 92,000. Bank credit: 7,350 + 5,000 + 6,000 = 18,350. Balance 73,650.
Discount allowed 200; discount received 150.

Answer:

Dr (Receipts)	Disc	Cash	Bank	Cr (Payments)	Disc	Cash	Bank
To Balance b/d		20,000	80,000	By Bhim	150		7,350
To Arun	200	9,800		By Bank (C)		12,000
To Cash (C)			12,000	By Cash (C)			5,000
To Bank (C)		5,000		By Rent			6,000
To Sales		15,000		By Salaries		8,000
				By Balance c/d		29,800	73,650
Total	200	49,800	92,000	Total	150	49,800	92,000

Example 4: Bank overdraft · 6 marks · Long answerHarder board level

On 1 March the cash was Rs 8,000 and the bank balance was Rs 6,000 (Dr). On 5 March a cheque of Rs 20,000 was issued to a supplier; on 10 March Rs 9,000 cash was received from a customer; on 15 March Rs 7,000 was deposited into the bank; on 20 March a cheque of Rs 4,500 was received and deposited. Find the closing cash and the bank position. (6 marks)

Try it first, then show the solutionSolution

Cash: 8,000 + 9,000 = 17,000; less deposit 7,000 = 10,000.
Bank: 6,000 + 7,000 + 4,500 = 17,500; less 20,000 = (2,500).
Bank balance is an overdraft of Rs 2,500 (a liability).

Answer: Closing cash Rs 10,000; bank overdraft Rs 2,500.

Example 5: Reasoning · 4 marks · Short answerHOTS / competency

A clerk records a cash deposit into the bank on the debit side of the bank column only and also posts it to the Cash account in the ledger. Explain the two errors and the effect on the cash and bank balances if Rs 15,000 is deposited. (4 marks)

Try it first, then show the solutionSolution

The deposit is a contra entry: Bank Dr and Cash Cr both in the cash book; the credit to cash column is missing, so cash is overstated by 15,000.
Posting a contra entry to the ledger duplicates what the cash book already is.

Answer: The missing credit leaves the cash balance Rs 15,000 too high; posting a contra to the ledger is a double record. Correct: Bank Dr, Cash Cr in the cash book, no ledger posting.

Where students lose marks in Triple Column Cash Book, Contra Entries and Overdraft

The slips examiners see most often, and what to write instead.

Mistake: Adding discount to the cash column
Treating as money.
Wrong working
Cash 9,800 + 200 = 10,000
Right working
Cash 9,800; discount 200 in its own column
Do this: Discount columns are memoranda.
Usually costs: 2 marks.
Mistake: Posting contra entries to the ledger
Thinking all entries post.
Wrong working
Cash A/c Dr 12,000 in ledger
Right working
Marked C, not posted
Do this: Contra stays in the cash book.
Usually costs: 1-2 marks.
Mistake: Showing overdraft as an asset
Bank is normally an asset.
Wrong working
Bank balance 2,500 Dr
Right working
Bank overdraft 2,500 Cr (liability)
Do this: Credit side larger means overdraft.
Usually costs: 2 marks.

Exam tips

Complete both sides for a contra.
Balance cash and bank separately.
Show the discount totals below the columns.

Practice questions on Triple Column Cash Book, Contra Entries and Overdraft

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
Discount allowed is entered on:
(a) the credit side of the cash book (b) the debit side of the cash book (c) the bank column only (d) the journal
Hint
Customer pays less.
Answer
(b) the debit side of the cash book
Q2 · 3 marks · Short answerBoard level
What are contra entries? Give two examples. (3 marks)
Hint
Both in the cash book.
Answer
Contra entries affect both the cash and bank columns of the cash book, so both debit and credit are in it. Examples: cash deposited into the bank; cash withdrawn from the bank for office use.
Q3 · 7 marks · Long answerHarder board level
Opening cash Rs 15,000, bank Rs 45,000 (Dr). Received from Sunita Rs 19,500, discount Rs 500 (cheque deposited). Paid to Tarun by cheque Rs 11,760, discount Rs 240. Cash sales Rs 12,000. Deposited cash Rs 10,000. Withdrew Rs 4,000 from the bank for personal use. Paid wages Rs 3,000 in cash. Find the closing cash, bank and discount totals. (7 marks)
Hint
Personal withdrawal is drawings.
Answer
Cash: 15,000 + 12,000 = 27,000; payments: deposit 10,000 + wages 3,000 = 13,000; closing cash 14,000. Bank: 45,000 + 19,500 + 10,000 = 74,500; payments 11,760 + 4,000 = 15,760; closing bank 58,740. Discount allowed 500; discount received 240.
Q4 · 4 marks · Short answerHarder board level
The cash book shows these: cash receipts Rs 62,500, cash payments Rs 41,800, opening cash Rs 9,300. Cash in hand physically counted is Rs 30,500. Find the closing cash as per the books and the difference, giving two possible reasons. (4 marks)
Hint
9,300 + 62,500 - 41,800.
Answer
Closing cash as per books = 9,300 + 62,500 - 41,800 = Rs 30,000. Physical cash is Rs 500 higher; possible reasons: a payment recorded twice or receipt unrecorded.
Q5 · 3 marks · Short answerHOTS / competency
The owner says "I will record all cash discounts in the bank column since the cheque is for the discounted amount." Evaluate with a debtor owing Rs 5,000 who pays Rs 4,900. (3 marks)
Hint
Where does the 100 go?
Answer
The bank column shows only the Rs 4,900 received; the Rs 100 discount belongs in the discount allowed column so the debtor's account of Rs 5,000 is closed. Putting 5,000 in bank would overstate it.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.Three columns?Show answer
Discount, cash and bank.
2.Contra folio mark?Show answer
C.
3.Discount allowed side?Show answer
Debit.
4.Overdraft where?Show answer
Credit side bigger.
5.Is the cash book a ledger?Show answer
Yes, for cash and bank.

Triple Column Cash Book, Contra Entries and Overdraft: frequently asked questions

Is cash book double entry?

Yes, it holds the accounts of cash and bank.

Do I post discount column items individually?

Only totals to the discount accounts.

What if bank column is credit?

It is an overdraft.

Is cash ever negative?

No.