Question

Prepare a two-column Cash Book from the following transaction for the year July 2018.

July 2018		Amt (₹)
01	Cash in hand	17,500
01	Cash at Bank	5,000
03	Purchased goods for cash	3,000
05	Received cheque from Arun	10,000
08	Sold goods for cash	8,000
10	Arun’s cheque deposited into the bank	–
12	Purchased goods and paid by cheque	20,000
15	Paid establishment expenses through bank	1,000
18	Cash Sales	7,000
20	Deposited into bank	10,000
24	Paid General Expenses	500
27	Received commission by Cross cheque	6,000
29	Paid Rent	2,000
30	Withdrew cash for personal use	1,200
31	Wages paid	6,000

Answer 1

	In the books of ____________
Dr.	Cash Book										Cr.
Date	Receipts	R. No.	LF No.	Cash ₹	Bank ₹	Date	Payments	V. No.	LF No.	Cash ₹	Bank ₹
2018 July 1	To Balance b/d			17,500	5,000	2018 July 3	By Purchases A/c (Being cash purchases of goods)			3,000	-
5	To Arun A/c (Being cheque received from Arun)			10,000	-	10	By Bank A/c (Being cheque of Arun deposited into bank)		C	10,000
8	To Sales A/c (Being goods sold for cash)			8,000	-	12	By Purchases A/c (Being goods purchased and amount paid by cheque)			-	20,000
10	To Cash A/c (Being cheque of Arun deposited into bank)		C	-	10,000	15	By Establishment expenses A/c (Being Establishment expenses paid through bank)				1,000
18	To Sales A/c (Being goods sold for cash)			7,000	-	20	By Bank A/c (Being cash deposited into bank)		C	10,000	-
20	To Cash A/c (Being cash deposited into bank)		C	-	10,000	24	By General Expenses A/c (Being general expenses paid)			500
27	To Commission A/c (Being Commission received by cheque)			-	6,000	29	By Rent A/c (Being rent paid)			2,000
						30	By Drawing A/c (Being cash withdrawn for personal use)			1,200
						31	By wages A/c (Being wages paid)			6,000
						31	By Balance c/d			9,800	10,000
				42,500	31,000					42,500	31,000
Aug. 1	To Balance b/d			9,800	10,000