a)All entries in Three Column Cash Book are not posted into the ledger

All the entries recorded in the Three Column Cash Book are to be posted to their respective ledger accounts, except the contra entries. For posting the entries recorded on the debit side of the cash book, credit the accounts concerned in the ledger by writing 'By Cash Nc' if the entry is in cash column, and 'By Bank Nc' if the entry is in bank column. If discount is also involved, credit the concerned personal account by writing 'By Discount Mowed Nc'. Totals of the discount allowed and discount received columns shall be posted to the respective discount accounts the same way as for Two Column Cash Book. 

b)The total in the cash column on the debit side of the cash book is always more than its credit side, but it is not true of the bank column

All cash and cheque payments are to be recorded on the credit side:

When payment is made by cash, the amount is recorded in the cash column. If it is made by cheque, it is recorded in the bank column. The date on which payment is made, and the name of the person to whom payment is made, are recorded in the date and particulars columns respectively.

Discount received, if any, at the time of making payment is to be recorded on the credit side in the discount received column as usual.

All receipts of cash or cheques are to be recorded on the debit side:

When payment is received in cash, the amount is recorded in the cash column. If it is by cheque it is recorded in the bank column. The date on which it is received, and the name of the person from whom it is received, are recorded in the date and particulars columns respectively.

If any discount is allowed to a party on receipt of cash or cheque, it is recorded on the debit side in the discount allowed column as usual. 

c)When a cheque received is endorsed to a third party, it must be entered on both sides of the cash book

A cheque is a negotiable instrument. It can be transferred to another person by ‘endorsement' (except in case of a bearer cheque which can be transferred by mere delivery). The endorsement is done by signing at the back of the cheque and writing the name of the party to whom it is to be transferred. For example, if a cheque payable to Mr. P. Ram Dev is to be endorsed in favor of Mr. Kishan Lal, Mr. P. Ram Dev will write at the back of the cheque as follows:            

Pay to Kishan Lal or Order

P. Ram Dev

(Signature) 

Thus, endorsement can be defined as signing at the back of the cheque for the purpose of negotiation. The person who endorses the cheque is called 'endorser' (P. Ram Dev in this example) and the person to whom it is endorsed is called 'endorsee’ Kishan Lal in this example). Kishan Lal can now collect payment of this cheque.