Enter the following transactions in a cash book with cash and bank and columns for the month of April, 2011:

2011 Apr.

1.

Started business with cash Rs 30,000.

2.

Opened a current account with bank and deposited Rs 9,000.

5.

Received Rs 4850 for cash sales and discount allowed Rs 50.

6.

Purchased goods of Rs 3,000 at 10% cash discount, half the amount was paid by cash and remaining by cheque.

9.

Received a crossed cheque for Rs 7,775 from Megha Associates and discount allowed Rs 25.

12.

Purchased machinery of Rs 13,300 and paid for installation Rs 700.

15.

Received a bearer cheque of Rs 737 from Rahul in settlement of his account Rs 800.

17.

Deposited into the bank Rs 2,000.

20.

Transferred Rs 8,000 from proprietor’s savings account to Current account.

22.

Received a bearer cheque from Vinod Rs 2,230.

24.

Deposited the cheque received from Vinod into the bank.

27.

Bank informed that cheque received from Vinod is dishonoured.

28.

Paid for printing bill book Rs 660.

30.

Withdrew from bank for office use Rs 1,000.

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Solution

Cash Book

Dr.

Cr.

Date

Particulars

L.F.

Cash

(Rs)

Bank

(Rs)

Date

Particulars

L.F.

Cash

(Rs)

Bank

(Rs)

April

2011

April

2011

1

Capital A/c

30,000

–

2

Bank A/c

C

9,000

–

2

Cash A/c

C

–

9,000

6

Purchases A/c

[(3,000 – 300) / 2]

1,350

1,350

5

Sales A/c

4,850

–

12

Machinery A/c

14,000

–

9

Megha Associates A/c

–

7,775

17

Bank A/c

C

2,000

–

15

Rahul A/c

737

27

Vinod A/c

–

2,230

17

Cash A/c

C

–

2,000

28

Printing A/c

660

–

20

Capital A/c

–

8,000

30

Cash A/c

C

–

1,000

24

Cheques-in-Hand A/c

C

–

2,230

30

Balance c/d

8,840

25,162

30

Bank A/c

C

1,000

–

35,850

29,742

35,850

29,742

Note- In the solution, for the transaction dated April 22, 2011, the cheque so received from Vinod worth Rs 2,230 is being deposited on April 24, 2011. Hence, in this case, as the cheque received is not deposited on the same date, so we have followed the modern practice. As per which, such cheques (not deposited on the same date of receiving) are regarded as Cheques-in-Hand. In this Journal Entry is:

Cheques-in-Hand A/c Dr.
To Vinod A/c

This Journal entry is not recorded in the Cash Book, in fact is recorded in the Journal proper. Therefore, due to this cause the answer as per our solution differs from that of given in the book.

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Enter the following transactions in a cash book with cash and bank column for the month July, 2011:

2011 July
1.	Cash in hand Rs 23,000, Bank balance Rs 14,000.
2.	Cash sales Rs 8,500 at 10% trade discount.
4	Purchased goods for cash Rs 10,000 at 10% trade discount and 5% cash discount. Half the amount was paid in cash remaining by cheque.
7.	Deposited into bank Rs 8,000.
9.	Received on account a bearer cheque from Sameer for Rs 9,550 and discount allowed to them Rs 25.
12.	Sold goods for cash Rs 8,000 at 4% trade discount.
15.	Paid Life Insurance Premium Rs 3,225.
18.	Cheque received on 9 July 2011 deposited into the bank.
20.	Withdrew from bank for office use Rs 7,000.
22.	Received a crossed cheque from Prabhu for Rs 4,670 in full settlement of his account Rs 4,700.
27.	Introduced additional capital Rs 15,000 and deposited the same into the bank.
28	Received a cheque for dividend Rs 6,245.
29.	Paid electricity bill Rs 2,000 and telephone bill Rs 4,100.

Enter the following transactions of Hariram Bros. in a cash book with cash and bank columns for the month of May, 2011:

2011 May
1.	Cash Balance Rs 33,000, Bank Balance Rs 8,000.
3.	Received from Prerna cash Rs 2,750 and a bearer cheque for Rs 645.
6.	Paid to Arjun Rs 5,300 by cheque and discount received Rs 125.
8.	Cash sales Rs 5,645 and discount allowed Rs 55.
10.	Cheque received on 3rd May, 2011 deposited into the bank for collection.
12.	Deposited into bank Rs 4,000.
15.	Cheque received from Prerna returned dishonoured.
18.	Purchased goods from Indrajit Rs 4,000 at 8% trade discount and paid half the amount immediately.
20.	Bank paid insurance premium under our standing instruction Rs 1,950 and collected interest on investment Rs 3,650.
22.	Cheque issued to Arjun was dishonoured.
24.	Lucky Stores directly deposited into our bank Rs 9,500.
25.	Paid salaries by cheque Rs 5,700.
26.	Withdrew by cheque Rs 2,000 for office use and Rs 1,500 for personal use.
31.	Deposited into bank all cash in excess of Rs 5,000.

Record the following transactions of Mr. Chavan in a cash book with cash and bank columns for the month April. 2011.

2011 Apr.
1	Cash Balance Rs 56,000 Bank overdraft Rs 11,000.
3	Purchased goods for Rs 13,000 for cash at 2% cash discount.
6	Received a bearer cheque for Rs 13,250 in full settlement of Rs 13,500 from Govind Traders.
9	Purchased 100 shares of Amar Ltd. of Rs 100 each at Rs 110 each and paid by cheque the
	amount immediately.
11	Sold goods of Rs 7,000 at 5% cash discount to Pramod and he paid half the amount immediately.
14	Deposited into bank Rs 11,000.
17	Received a crossed cheque for Rs 18,000 from Gajanan Traders.
20	Bank paid our telephone bill Rs 3,230.
21	Bank charged Rs 540 as interest on overdraft.
22	Paid by cheque to Urmila Rs 8,000.
25	Deposited into bank the cheque received from Govind Traders.
27	Received a bearer cheque for Rs 3,460 for rent which was deposited into bank.
29	Bank informed that the cheque received for rent was dishonoured.
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Prepare Cash Book with Bank Column of Vinod from the following transactions:

Jan. 1 Cash in hand Rs. 100 and Bank Balance Rs. 2,000

Jan. 5 Purchased goods by Cheque Rs. 1,200.

Jan. 6 Drew Cheque for office use Rs. 50.

Jan. 7 Purchased Stationery for Cash Rs. 10

Jan. 8 Received cheque from Mr. X Rs. 125.

Jan. 10 Carriage paid in cash Rs. 33.

Jan. 12 Z paid us cheque Rs. 175

Jan. 12 Paid Mr. A by cheque Rs. 195

Jan. 27 Received cheque for sales Rs. 200.

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2011 Apr.
1.	Started business with cash Rs 30,000.
2.	Opened a current account with bank and deposited Rs 9,000.
5.	Received Rs 4850 for cash sales and discount allowed Rs 50.
6.	Purchased goods of Rs 3,000 at 10% cash discount, half the amount was paid by cash and remaining by cheque.
9.	Received a crossed cheque for Rs 7,775 from Megha Associates and discount allowed Rs 25.
12.	Purchased machinery of Rs 13,300 and paid for installation Rs 700.
15.	Received a bearer cheque of Rs 737 from Rahul in settlement of his account Rs 800.
17.	Deposited into the bank Rs 2,000.
20.	Transferred Rs 8,000 from proprietor’s savings account to Current account.
22.	Received a bearer cheque from Vinod Rs 2,230.
24.	Deposited the cheque received from Vinod into the bank.
27.	Bank informed that cheque received from Vinod is dishonoured.
28.	Paid for printing bill book Rs 660.
30.	Withdrew from bank for office use Rs 1,000.