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A two-column cash book has separate columns for cash and bank transactions, while a three-column cash book has separate columns for cash, bank, and discount allowed/received transactions. The main difference lies in the additional discount column in the three-column cash book, which allows for the recording of discounts given or received. This additional column provides more detailed information on discount transactions, making it easier to track and analyze such transactions separately from cash and bank transactions.

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ProfBot

7mo ago

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