Cash and bank accounts are not prepared when double column cash book is maintained.

True

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False

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From the following Cash Book (with cash and Bank columns) prepare necessary Ledger Accounts and balance them.

Cash Book (with Cash & Bank Columns)
Dr.						Cr.
Date	Particulars	L.F.	Cash Rs	Bank Rs	Date		Particulars	L.F	Cash Rs	Bank Rs
2011 Apr.					2011 Apr.
1	To Balance b/d		400	1,000	1		By Purchases A/c		700
2	To Ram ‘s A/c		980		3		By Rent A/c			200
3	To Sales A/c			4,000	10		By Sita’ s A/c		300
7	To Interest A/c		120		8		By Salaries A/c			450
10	To Sales A/c		500		10		By Purchases A/c			1,350
25	To Bank A/c		2,000		30		By Cash A/c			2,000
					30		By Balance c/d		3,000	1,000
			4,000	5,000					4,000	5,000
May 1	To Balance b/d		3,000	1,000

2016		(₹)
May 1	Cash in hand	34,000
	Balance with Hongkong Bank	75,200
	Balance with Citi Bank	1,20,000
May 3	Cash drawn from Citi Bank for office use	25,000
May 8	Sold goods to Diwedi for ₹ 80,000 and received from him ₹ 20,000 in cash and a cheque for the balance. The cheque is deposited in Hongkong Bank on 9th and the bank credited the amount on 15th and debited ₹ 25 as its collection charges.
May 12	Purchased goods for ₹ 40,000 at 20% trade discount. 25% of the amount is paid in cash and issued a cheque on Citi Bank for the balance amount.
May 20	Paid Wages ₹ 36,000 and Salary ₹ 4,000.
May 22	A cheque for ₹ 50,000 is drawn on Citi Bank and it is deposited in Hongkong Bank.
May 23	Purchased land for ₹ 3,20,000 and a cheque is issued on Hongkong Bank.
May 24	A cheque for ₹ 10,000 which was received from Mohan and was deposited in Citi Bank on 25th April is dishonoured and the bank debited ₹ 100 as bank charges on this cheque. The amount of dishonoured cheque and bank charges is received from Mohan in cash on 25th.
May 26	Deposited cash ₹ 30,000 in Hongkong Bank.
May 28	Sold old typewriter for ₹ 2,000 and old newspapers for ₹200 in cash.
May 30	Interest charged by Hongkong Bank ₹ 400.
May 31	Bank charges by Citi Bank ₹ 180 and Hongkong Bank ₹ 340.

2016		(₹)
May 1	Cash in hand	4,800
	Bank Overdraft	30,400
2	Fresh Capital introduced	20,000
3	Deposited into Bank	15,000
4	Sold goods to Mahesh on Credit	6,200
5	An amount of ₹ 4,200 due from Ashok written off as bad debts in the previous year, now recovered.
6	Withdrew from bank for the payment of Life Insurance Premium	3,000
8	Received a cheque form Mahesh for ₹ 6,000 in full settlement of his account and deposited the same into the Bank.
10	Sold goods to Varun on Credit.	30,000
12	Received a cheque for ₹ 28,000 from Varun in full settlement.
15	Cheque received from Varun sent to Bank
18	Varun's cheque returned by Bank dishonoured. Bank charged ₹ 25 on this cheque.
20	Received a cheque of ₹ 6,800 from Vijay which was endorsed to AmritRaj on 23rd May.
25	Withdrew cash from Bank ₹ 5,000 for paying gift to his daughter on her birthday.
26	Bought goods from Gupta General Store for ₹ 10,000 on credit and they allowed us trade discount of 25%.
28	Paid to Gupta General Stores in cash in full settlement	7,000
28	Sale of old machinery, payment received in cash ₹ 7,700.
30	Paid Salary by cheque ₹ 1,500. Paid Rent in cash ₹ 2,200.
31	Paid into Current Account the entire balance after retaining ₹ 5,000 at office.

2017		(₹)
Feb. 1	Cash in Hand ₹ 14,800; Bank Overdraft ₹ 32,700
4	Sold goods, received cheque (deposited same day)	4,950
5	Sold goods to Navin on Credit	10,000
8	Received from Navin a cheque for ₹ 9,500 in settlement of his account.
10	Sold goods to Murlidhar on Credit	6,000
12	Cheque received from Navin endorsed to Praveen in full settlement of his account	9,800
15	Received cheque from Ram	12,800
	Allowed him discount	200
16	Paid into Bank (including Ram's cheque)	15,000
18	Cheque from Ram returned dishonoured and bank debits our account in respect of charges on this cheque ₹ 20. Discount not withdrawn.
19	Received the amount of returned cheque and bank charges in cash from Ram.
20	Instructed the bank to issue a bank draft for ₹ 5,000 in favour of Shyam. Bank charged ₹ 40 for issuing the draft.
22	Murlidhar settled his account by means of a cheque for ₹ 6,200; including ₹ 200 as the interest charged from him. Lodged the cheque into bank.
24	Paid ₹ 5,000 by cheque for cash purchases.
25	Sudhir who owed us ₹ 8,000 became bankrupt and paid us 50 paise per rupee.
28	Paid salary to Manohar Lal	3,000
28	Banked	20,000

2017
March 1	Cash in hand ₹ 1,800 and at Bank ₹ 11,000.
5	Received a cheque for commission ₹ 3,960. Cheque was immediately deposited into bank.
7	Bought goods for cheque ₹ 7,000.
8	Bought goods for cash ₹ 500.
10	Purchased a Computer and payment made by cheque of ₹ 5,000.
14	Paid Trade Expenses ₹ 105.
16	Paid into Bank ₹ 1,000.
18	Ramesh who owed us ₹ 500 became bankrupt and paid us 50 paise in a ₹.
20	Received ₹ 400 from Manohar and allowed him discount ₹ 10.
23	Withdrew from Bank ₹ 400.
23	Paid ₹ 300 to Ghanshyam Dass & Co. They allowed us discount ₹ 10.
24	Received ₹ 2,000 from Hari Ram and deposited the same into Bank.
25	Withdrew from Bank for private expenses ₹ 300.
27	Sold goods for cash ₹ 200.
28	Received cheque for goods sold ₹ 9,000.
29	Received repayment of a loan of ₹ 5,000 and deposited ₹ 3,000 out of it into Bank.
30	Bank charges as per Book ₹ 5.

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