Question

Compile a Two Column Cash Book from the following transactions of Kavita Garments∶−

2017
Feb. 1	Cash in hand ₹ 7,500; Cash at bank ₹ 8,000.
3	Received a cheque of ₹ 5,880 for cash sales. Cheque was immediately deposited into bank.
5	Received two cheques from Kalpna each of ₹ 10,000.
6	First cheque received from Kalpna is endorsed to Sunita in full settlement of ₹ 10,200.
	Second cheque is sent to bank for collection.
8	Second cheque received from Kalpna is returned as dishonoured by the bank.
	The bank has debited our account with ₹ 20 as bank charges on this cheque.
10	Received cheque from sale of old furniture ₹ 1,950. Next day, the cheque is endorsed to a creditor Ramesh in full settlement of ₹ 2,000 due to him.
12	Purchased goods from Mohan on Credit for ₹ 8,000.
15	Settled Mohan's account by giving a cheque for ₹ 4,000 and Cash ₹ 3,900.
16	Goods sold to Pawan for ₹ 6,000. He paid the amount in cash immediately after deducting 2$\frac{1}{2}$% cash discount.
20	Paid salary by cheque ₹ 5,000.
25	Cash sale to date ₹ 50,000 of which ₹ 40,000 banked.
26	Paid electric bill of ₹ 2,000 for January by cheque. Paid Rent for January ₹ 1,500.
27	Cash purchases ₹ 5,000, issued a cheque.
28	Deposited into bank cash retaining ₹ 7,500.

Answer 1

Cash Book
Dr.										Cr.
Date		Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)
2017						2017
Feb. 01		Balance b/d		7,500	8,000	Feb. 08	Kalpna			10,020
Feb. 03		Sales A/c			5,880	Feb. 15	Mohan		3,900	4,000
Feb. 06		Cheque in Hand A/c			10,000	Feb. 20	Salary A/c			5,000
Feb. 16		Sales A/c		5,850		Feb. 26	Outstanding Electric Bill A/c			2,000
Feb. 25		Sales A/c		10,000	40,000	Feb. 26	Outstanding Rent A/c		1,500
Feb. 28		Cash A/c	C		10,450	Feb. 27	Purchases A/c			5,000
						Feb. 28	Bank A/c	C	10,450
						Feb. 28	Balance c/d		7,500	48,310
				23,350	74,330				23,350	74,330
Mar. 01		Balance b/d		7,500	48,310

Working Notes:

WN1

Journal Proper
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Feb. 05	Cheques-in-Hand A/c (1)	Dr.		10,000
	Cheques-in-Hand A/c (2)	Dr.		10,000
	To Kalpna				20,000
	(Received cheque from Subhash)
Feb. 06	Sunita	Dr.		10,200
	To Cheques-in-Hand A/c (1)				10,000
	To Discount Received A/c				200
	(Cheque received from Kalpna, endorsed to Sunita)
Feb. 06	Bank A/c	Dr.		10,000
	To Cheques-in-Hand A/c (2)				10,000
	(Cheque received from Kalpna, sent to bank for collection)
Feb.10	Cheques-in-Hand A/c	Dr.		1,950
	To Furniture A/c				1,950
	(Cheque received against sale of furniture)
Feb. 11	Ramesh			2,000
	To Cheques-in-Hand A/c				1,950
	To Discount Received A/c				50
	(Cheque received from Sale of furniture, endorsed to Ramesh)

WN2 Cash Deposited into the Bank

Note: Transaction dated Feb. 12, 2017, will not be recorded in Cash Book because credit transactions will not affect the cash/bank balance.