Q.From the following transactions of Kavya Traders for September 2026, prepare the Triple Column Cash Book, identifying the contra entries:
Sep 1 — Cash in hand ₹4,000; Bank balance ₹20,000.
Sep 5 — Cash deposited into Bank ₹3,000.
Sep 12 — Paid to Suresh Traders by cheque ₹9,500 in full settlement of ₹10,000 due.
Sep 18 — Cash withdrawn from Bank for office use ₹2,000.
Sep 25 — Cash sales ₹5,000.

Contra entries — cash deposited into bank, and cash withdrawn from bank — appear on both sides of the same Cash Book and need no further posting; only the true external transactions (Sales, payment to Suresh Traders) need ledger posting elsewhere.

Cash column: receipts (4,000+2,000+5,000=11,000) less payments (3,000) = 8,000. Bank column: receipts (20,000+3,000=23,000) less payments (9,500+2,000=11,500) = 11,500.

Triple Column Cash Book of Kavya Traders — September 2026

The two CONTRA ENTRIES are Sep 5 (cash deposited into bank — Cash decreases, Bank increases) and Sep 18 (cash withdrawn from bank for office use — Bank decreases, Cash increases); both are marked 'C' in the L.F. column and need no separate ledger posting, since both aspects already appear within this one Cash Book.

Working: Cash column — Dr total 11,000, Cr side (excluding balance c/d) 3,000, so closing balance = 8,000. Bank column — Dr total 23,000, Cr side (excluding balance c/d) = 9,500 + 2,000 = 11,500, so closing balance = 23,000 − 11,500 = 11,500. Discount Received (Sep 12: ₹10,000 due, ₹9,500 paid) = ₹500, posted to the credit of Discount Received Account.

Students sometimes try to post a contra entry to an outside ledger account — a contra entry is complete within the Cash Book itself (one column debited, the other credited, both within the same book), so it is never posted anywhere else.