Question

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.

Answer 1

In the Books of Hariram Bros.
Cash Book
Dr.						Cr.
Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date		Particulars	L.F.	Cash (Rs)	Bank (Rs)
May 2011					May 2011
1	Balance b/d		33,000	8,000	6		By Arjun		–	5,300
3	Prerna		2,750	–	12		Bank A/c	C	4,000	–
8	Sales A/c		5,645	–	15		Prerna		–	645
10	Cheques in Hand A/c		–	645	18		Purchases A/c		1,840	–
12	Cash A/c	C	–	4,000	20		Insurance Premium A/c		–	1,950
20	Interest on Investment A/c		–	3,650	25		Salaries A/c		–	5,700
22	Arjun		–	5,300	26		Cash A/c	C	–	2,000
24	Lucky Stores		–	9,500	26		Drawings A/c		–	1,500
26	Bank A/c	C	2,000	–	31		Bank A/c	C	32,555	–
31	Cash A/c	C	–	32,555	31		Balance c/d		5,000	46,555
			43,395	63,650					43,395	63,650