The value of honesty has been violated as only business expenses should be shown and personal expenses should not be shown.

Cash column in a cash book cannot have a credit balance because actual payments (credit side) of cash cannot exceed actual cash available (debit side) with the business.

If bank allows the customer to draw more money from bank account than the actual amount lying in the bank account, then it will have negative balance. Such negative bank balance is called overdraft

(i) Cash is paid into bank.
(ii) Cash remitted into bank.

(i) A three column cash book includes three amount columns on both sides, i.e., cash, discount and bank, This cash book is prepared in the same way as simple and double column cash books are prepared.
(ii) Opening balance, cash deposited into bank, cheque deposited in the bank appear in the bank column on the debit side of the three column cash book.
(iii) All the transactions which decrease bank balance are recorded in the bank column on the credit side

Cash book with Cash and discount columns
Dr                                                                                                                   Cr

(i) Double column Cash book is a cash book with cash and discount columns. As there are two columns, i.e., discount and cash columns, both on debit and credit sides, the cash book is known as 'double column cash book'.
(ii) The double column cash book is prepared on the lines of simple cash book. It has only one additional column, i.e., discount column on each side.

Simple column cash book