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What is a three-column cash book and how is it prepared?
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A Three-Column Cash Book records all cash and bank transactions, including discounts allowed and received. It has a debit side for receipts and a credit side for payments.
Step 1: Identify all cash and bank transactions from the given data.
Transactions not involving cash or bank (credit sales/purchases, sales returns) are excluded from the Cash Book.
Step 2: Record all cash and bank receipts on the debit side of the Cash Book.
\begin{array}{|l|l|l|r|r|r|}
\hline
\multicolumn{6}{|c|}{Debit (Receipts)} \\
\hline
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