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Question
Prepare a two-column Cash Book with the help of the following information for January 2018.
| January 2018 | Amt (₹) | |
| 01 | Started business with cash | 1,20,000 |
| 03 | Cash paid into Bank of Baroda | 50,000 |
| 05 | Purchased goods from Sakshi on credit | 20,000 |
| 06 | Sold goods to Divakar and received a bearer cheque | 20,000 |
| 10 | Paid to Sakshi cash | 20,000 |
| 14 | Cheque received on December 06, 2018, deposited into Bank | |
| 18 | Sold goods to Shivaji on credit | 12,000 |
| 20 | Cartage paid in cash | 500 |
| 22 | Received cash from Shivaji | 12,000 |
| 27 | Commission received | 5,000 |
| 30 | Drew cash for personal use | 2,000 |
Solution
| In the books of ____________ | |||||||||||
| Dr. | Cash Book | Cr. | |||||||||
| Date | Receipts | R. No. | LF No. | Cash ₹ | Bank ₹ | Date | Payments | v. No. | LF No. | Cash ₹ | Bank & |
| 2019 Jan. 1 |
To Capital A/c (Being business started with cash) |
1,20,000 | 2019 Jan. 3 |
By Bank A/c (Being cash deposited into Bank of Baroda) |
c | 50,000 | - - | ||||
| 3 |
To Cash A/c (Being cash deposited into Bank of Baroda) |
c | - | 50,000 | 10 |
By Sakshi A/c (Being cash paid to Sakshi) |
20,000 | - - | |||
| 6 |
To Sales A/c (Being goods sold and bearer cheque received) |
20,000 | - | 14 |
By Bank A/c (Being bearer cheque received from Divakar deposited into bank) |
c | 20,000 | - - | |||
| 14 |
To Cash A/c (Being bearer cheque received from Divakar) |
c | - | 20,000 | 20 |
By Cartage A/c (Being cartage paid) |
500 | - - | |||
| deposited into bank) | |||||||||||
| 22 |
To Shivaji A/c (Being cash received from Shivaji) |
12,000 | - | 30 |
By Drawings A/c (Being cash withdrawn for personal use) |
2,000 | - - | ||||
| 27 |
To Commission A/c (Being commission received) |
5,000 | - | 31 | By Balance c/d | 64,500 | 70,000 | ||||
| 1,57,000 | 70,000 | 1,57,000 | 70,000 | ||||||||
| Feb. 1 | To Balance b/d | 64,500 | 70,000 | ||||||||
Notes
Transactions dated 5th and 18th are credit transactions, hence not to be recorded in the cash book.
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RELATED QUESTIONS
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What is a Cash Book?
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The entry which is recorded on both sides of cash book.
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Additional cash introduced in business is recorded in ______
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Cash Book records transactions relating to receipts and payments of cash.
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Cash Book does not record the ______ Transactions.
| Cash Sales | Credit Sales | Sales Return | Total Sales | |||
| ? | + | 60,000 | - | 3,000 | = | 1,02,000 |
Record the following transactions in the Cash Book of M/s Kamal Traders. Balance for the month of July 2018: Cash in hand ₹ 2,000 and balance in Bank Current account ₹ 8,000.
| July 2018 | Amt (₹) | |
| 03 | Cash Sales | 2,300 |
| 05 | Purchased goods and amount paid by cheque | 6,000 |
| 08 | Cash Sales | 10,000 |
| 12 | Paid General Expenses | 700 |
| 15 | Sold goods and amount received by Cheque and deposited into Bank | 20,000 |
| 18 | Purchased Motor Car paid by Cheque | 15,000 |
| 20 | Cheque received from Mrunal deposited into Bank | 10,000 |
| 22 | Cash Sales | 7,000 |
| 25 | Mrunal’s cheque returned dishonoured | |
| 28 | Paid Rent | 2,000 |
| 29 | Paid Telephone expenses by cheque | 500 |
| 31 | Cash is withdrawn from Bank for personal use | 2,000 |
