Question

Enter the following transactions in a Double Column Cash Book and Journal Proper and post them into Ledger ∶

May 1	Balance of Cash in Hand ₹ 12,400; Bank Overdraft ₹ 36,000.
3	Direct deposit by Mr. Ganesh in our bank account ₹ 10,000. Discount allowed ₹ 200.
5	Issued a cheque of ₹ 7,700 to Mr. Suresh in full settlement of his account of ₹ 8,000.
6	Received a cheque from X for ₹ 12,000. Discount allowed ₹ 500. This cheque was deposited into bank on 7th May.
8	Received Cash ₹ 22,000 and cheque of ₹ 8,000 for cash sale.
12	Cash sale ₹ 70,000 of which ₹ 55,000 banked.
15	Cheque received on 8th May endorsed to Mr. Sunil. Discount received ₹ 150.
20	Discounted a B/R of ₹ 10,000 at 1% through bank.
24	Cheque received from X dishonoured, Bank debits ₹ 20 in respect of bank charges.
25	Purchased goods for ₹ 50,000 at a trade discount of 10%. Payment was made in cash.
26	Withdrew from bank ₹ 10,000 for office use and ₹ 2,000 for personal use.
31	Interest debited by Bank ₹ 4,500.

Answer 1

Cash Book
Dr.
Date		Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)
May 01		Balance b/d		12,400	–	May 01	Balance b/d		–	36,000
May 03		Ganesh’s A/c		–	10,000	May 05	Suresh’s A/c		–	7,700
May 07		Cheques-in-hand A/c		–	12,000	May 24	X’s A/c		–	12,000
May 08		Sales A/c		22,000	–	May 24	Bank Charges A/c		–	20
May 12		Sales A/c		15,000	55,000	May 25	Purchases A/c		45,000	–
May 20		Bills Receivable A/c		–	9,900	May 26	Cash A/c	C	–	10,000
May 26		Bank A/c	C	10,000	–	May 26	Drawings A/c		–	2,000
						May 31	Interest A/c		–	4,500
						May 31	Balance c/d		14,400	14,680
				59,400	86,900				59,400	86,900
June 01		Balance b/d		14,400	14,680

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
May 06	Cheques-in-Hand A/c	Dr.		12,000
	Discount Allowed A/c	Dr.		500
	To X’s A/c				12,500
	(Cheque received from X but not banked)
May 08	Cheques-in-Hand A/c	Dr.		8,000
	To Sales A/c				8,000
	(Cheque received for sales but not banked)
May 15	Sunil’s A/c	Dr.		8,150
	To Cheques-in-Hand A/c				8,000
	To Discount Received A/c				150
	(Cheque received from sales endorsed to Sunil)
May 20	Discounting Charges A/c	Dr.		100
	To Bills Receivable A/c				100
	(Bills receivable discounted with bank)
May 24	X’s A/c	Dr.		500
	To Discount Allowed A/c				500
	(Discount cancelled)

Discount Allowed Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 03		Ganesh’s A/c		200	May 24	X’s A/c		500
May 06		X’s A/c		500	May 31	Balance c/d		200
				700				700
June 01		Balance b/d		200

Discount Received Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 31		Balance c/d		450	May 05	Suresh’s A/c		300
					May 15	Sunil’s A/c		150
				450				450
					June 01	Balance b/d		450

Cheques-in-Hand Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 06		X’s A/c		12,000	May 07	Bank A/c		12,000
May 08		Sales A/c		8,000	May 15	Sunil’s A/c		8,000
				20,000				20,000

Discounting Charges Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 20		Bills Receivable A/c		100	May 31	Balance c/d		100
				100				100
June 01		Balance b/d		100

Bills Receivable Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 31		Balance c/d		10,000	May 20	Bank A/c		9,900
					May 20	Discounting Charges A/c		100
				10,000				10,000
					June 01	Balance b/d		100

Ganesh’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 31		Balance c/d		10,200	May 03	Bank A/c		10,000
					May 03	Discount Allowed A/c		200
				10,200				10,200
					June 01	Balance b/d		10,200

X’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 24		Discount Allowed A/c		500	May 06	Cheques-in-Hand A/c		12,000
May 24		Bank A/c		12,000	May 06	Discount Allowed A/c		500
				12,500				12,500

Suresh’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 05		Bank A/c		7,700	May 31	Balance c/d		8,000
May 05		Discount Received A/c		300
				8,000				8,000
June 01		Balance b/d		8,000

Sales Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 31		Balance c/d		1,00,000	May 08	Cash A/c		22,000
					May 08	Cheques-in-Hand A/c		8,000
					May 15	Cash A/c		15,000
					May 15	Bank A/c		55,000
				1,00,000				1,00,000
					June 01	Balance b/d		1,00,000

Bank Charges Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 24		Bank A/c		20	May 31	Balance c/d		20
				20				20
June 01		Balance b/d		20

Purchases Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 25		Bank A/c		45,000	May 31	Balance c/d		45,000
				45,000				45,000
June 01		Balance b/d		45,000

Drawings Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 26		Bank A/c		2,000	May 31	Balance c/d		2,000
				2,000				2,000
June 01		Balance b/d		2,000

Interest Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 31		Bank A/c		4,500	May 31	Balance c/d		4,500
				4,500				4,500
June 01		Balance b/d		4,500

Sunil’s Account
Dr.									Cr.
Date		Particulars	J.F.	Amount (Rs)	Date	Particulars	J.F.	Amount (Rs)
May 15		Cheques-in-Hand A/c		8,000	May 31	Balance c/d		8,150
May 15		Discount Received A/c		150
				8,150				8,150
June 01		Balance b/d		8,150