FINANCIAL ACC 101

THREE COLUMN CASHBOOK

Hey Guys, it’s a new day to live and learn. Let’s get straight to work.

Three Column Cashbook is a book that shows or combines Cash, Bank, and Discount on the debit and credit sides. On the debit side of the cashbook is the Discount Allowed column while Discount Received column is on the credit side.

Discount is the reduction in the price of Goods in order to encourage Bulk Purchases and Prompt Payment.

Types of Discount:

1.     Trade Discount is an Allowance made by Manufacturers or Wholesalers, to retailers in form of Reduction from price of goods supplied.

2.     Cash Discount is a percentage allowance for prompt payment of an account or for payment within a specified period of time.

Classification of Cash Discount:

1.     Discount Allowed is the discount given to the customers for prompt payment of their account. It will be entered on the debit side of the three column cashbook and be credited to the personal account

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COMMERCE 101

CLASSIFICATION OF RETAIL TRADE

Happy Monday Everyone, we are here again, wow March has been nice. Hasn't it ? Hope you have enjoyed March so far, anyway we are continuing on the topic we started Last week, pls Enjoy!!!

                                             

                                             RETAIL TRADE

         

      SMALL SCALE TRADE                    LARGE SCALE TRADE

       

         - HAWKING                                           - CHAIN STORE

         - MOBILE SHOP                                    - DEPARTMENTAL

         - TRADING                                           - SUPERMARKET   

         - MARKET TRADE                               - DISCOUNT HOUSE

         - STREET/ ROAD                                  - VARIETY STORES

         - STORES (URBAN & RURAL)           - HYPER MARKET

                                                                        - RETAIL COOPERATIVE.

                    METHOD OF CLASSIFICATION OF RETAIL STORE

1.     Type of Good offered for Sale.

2.     By Location for example Rural or Urban Areas.

3.     By Ownership for example Independent or Cooperative.

4.     Number of Employee’s.

5.     By the Size of Employee’s.

SMALL SCALE TRADE

As the name implies, it involves types of trading that are small in nature. For example:

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FINANCIAL ACC 101

                 TWO COLUMN CASHBOOK

Hey Guys, Happy Thursday. Sorry that this post is late, something came up but Praise be God that it is here now, so let's get started.

Two Column Cashbook is a combination of the Cash Account and Bank Account for the sake of convenience. There are separate columns for Date, Particulars, Folio, Cash and Bank on both the Debit and Credit sides.

Cash Column: contains cash receipts and payments.

Bank Column: contains all payments made by cheque and money received and paid into the Bank.

Contra Entries: are entries made in the cashbook when cash is deposited into the bank account out of cash in hand or when cash is withdrawn from the bank for office use.

Cash paid into the Bank: when there is surplus of cash in hand, the firm can pay it into the bank. Cash balance will decrease and Bank balance will increase.

Cash Column will be credited, Bank Column will be debited. There must be a letter “C” put in the folio column of both sides to signify that it’s a contra entry.

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