Advertisements
Advertisements
Question
How does a three-column cash book enhance efficiency in accounting?
Options
By removing the need for ledger postings.
By combining cash, bank, and discount transactions in one book.
By simplifying transactions with personal accounts.
By summarizing sales and purchases.
MCQ
Advertisements
Solution
By combining cash, bank, and discount transactions in one book.
Explanation:
A three-column cash book contains three separate columns on each side −
- Cash column
- Bank column
- Discount column
It enhances efficiency in accounting because it allows recording of cash, bank, and discount transactions together in one place.
This saves time, avoids duplication, and simplifies reference compared to maintaining separate books for each.
shaalaa.com
Is there an error in this question or solution?
