r19 for discount on each side. It is customary in business to allow discount when payment is received from a customer promptly and before due date. It is equally so when payment is made to a creditor before due date. All cash receipts and discount allowed are recorded on the debit side and all cash payments and discount received are recorded on the credit side of Cash Book The posting from the cash columns is done in the same manner as it is done in Single Column Cash Book. Entries from discount column of the debit side of the Cash Book are posted on the credit side of every individual debtor's account to whom the business has allowed the discount. The total of the debit side of the discount column is shown on the debit side of the "Discount Allowed Account" by writing "To Sundries" in the particulars column. Entries from the discount column of the credit side of the Cash Book are posted on the debit side of every individual creditor's account by whom the discount is allowed to the business. The total of the credit side of the discount column is shown on the credit side of the "Discount Received Account" by writing "By Sundries" in the particulars column. The cash column of the Double Column Cash Book is balanced exactly in the same manner as in case of the Single Column Cash Book. But, the discount columns are not balanced but merely totalled. These totals are posted to the respective Discount Allowed Account and Discount Received Account. Illustration 2: From the following transactions, prepare the Two Column Cash Book and also post them in the Ledger. 2006 Rs Aug 1 Cash in hand 25,500 Aug, 2 Received from Rakesh and 2.900 discount allowed to him 100 Aug. 5 Cash sales 6,000 Aug. 6 Purchased goods for cash 7,800 Aug. 8 Received from Neelam and 1.350 allowed her discount 50 Aug. 12 Paid to Ravinder and 3,400 received discount 200 Aug. 20 Paid rent 1,000 Aug. 25 Interest received in cash 500 Aug. 26 Paid to Kamal and 1,760 received discount 40 Aug. 28 Machinery purchased 5,200