To prepare a three-column cash book, follow these steps:
1. Draw a table with three columns: date, particulars, and amount.
2. In the date column, record the date of each transaction.
3. In the particulars column, record the details of each transaction, such as the name of the account, the type of transaction, and any other relevant information.
4. In the amount column, record the amount of each transaction.
5. Add two additional columns: cash and bank.
6. In the cash column, record all cash transactions, such as cash sales, cash purchases, and cash payments.
7. In the bank column, record all bank transactions, such as deposits, withdrawals, and bank charges.
8. At the end of each day, total the cash and bank columns and record the totals in the appropriate columns on the opposite page of the cash book.
9. Finally, balance the cash and bank columns to ensure that the cash book is accurate.
Remember to keep your three-column cash book up to date and accurate to ensure that your business has an accurate record of its cash and bank transactions.