Q.From the following transactions of Kavya Traders for December 2026, prepare the Triple Column Cash Book:
Dec 1 — Cash in hand ₹3,500; Bank overdraft ₹1,000.
Dec 4 — Cash sales ₹8,000.
Dec 9 — Deposited cash into Bank ₹6,000.
Dec 15 — Received a cheque from Anitha Enterprises ₹4,850, in full settlement of ₹5,000, deposited into bank the same day.
Dec 22 — Paid Suresh Traders by cheque ₹2,700, in full settlement of ₹2,800.
Dec 28 — Withdrew cash from Bank for personal use (Drawings) ₹1,500.

Track Cash and Bank as two separate running columns; treat the Dec 9 deposit as a genuine contra entry (both columns of the same Cash Book), but treat the Dec 28 bank withdrawal for PERSONAL use as a straight payment out of the Bank column only — not a contra — since the cash never came into the firm's till.

Triple Column Cash Book of Kavya Traders — December 2026

Two points deserve special attention:

1. Dec 1's OPENING Bank balance is a ₹1,000 OVERDRAFT, so it is entered on the CREDIT side ('By Balance b/d'), not the debit side — an overdraft is a liability, the opposite of the Cash column's own opening balance. …

The single biggest trap in this problem is treating the Dec 28 bank withdrawal as a contra entry (crediting Bank and debiting Cash) just because it says 'withdrew cash from Bank' — the key detail is that it is for PERSONAL use (Drawings), so the money never enters the firm's cash till at all; only a withdrawal for OFFICE use is a genuine contra entry. A second …