Mr. Chaturvedi maintains two bank accounts. Prepare his columnar cash book from the following particulars:

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.

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Solution

Cash Book

Dr. Cr.

Date Particulars L.F. Cash (Rs) Hongkong Bank
(Rs) Citi Bank (Rs) Date Particulars L.F. Cash (Rs) Hongkong Bank
(Rs) Citi Bank (Rs)

2016 2016

May 01 Balance b/d 34,000 75,200 1,20,000 May 03 Cash A/c C 25,000

May 03 Bank A/c C 25,000 May 12 Purchases A/c 8,000 24,000

May 08 Sales A/c 20,000 May 15 Collection Charges A/c 25

May 09 Cheques-in-Hand A/c C 60,000 May 20 Wages A/c 36,000

May 22 Citi Bank A/c 50,000 May 20 Salary A/c 4,000

May 25 Mohan 10,100 May 22 Hongkong Bank A/c 50,000

May 26 Cash A/c C 30,000 May 23 Land A/c 3,20,000

May 28 Office Equipments A/c 2,000 May 24 Mohan 10,100

May 28 Sundry Income A/c 200 May 26 Hongkong Bank A/c C 30,000

May 31 Balance c/d 1,05,565 May 30 Interest A/c 400

May 30 Bank Charges A/c 340 180

May 31 Balance c/d 13,300 10,720

91,300 3,20,765 1,20,000 91,300 3,20,765 1,20,000

June 01 Balance b/d 13,300 10,720 June 01 Balance b/d 1,05,565

Working Note:

Journal Proper

Date Particulars L.F. Debit Amount (Rs) Credit Amount (Rs)

2016

May 08 Cheque-In-Hand A/c Dr. 60,000

To Diwedi
60,000

(Cheque received from Diwedi)

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Similar questions

Q. Mr. Lal operates two bank accounts both of which are maintained in the columnar cash book itself. You are required to prepare a proforma of the cash book, record the following transactions therein and draw the closing balances as on 30th June, 2016:

2016		(₹)
June 20	Opening Balance of Cash	1,180
	Progressive Bank	19,040
	Goodwill Bank (Overdraft)	6,460
20	Received cheque for ₹ 1,800 from a debtor Mr. X and deposited in Goodwill Bank. The Bank credited the amount on 23rd June and debited ₹ 4 as its collection charges.
21	Purchased goods for ₹ 18,210 and a cheque issued on Progressive Bank.
22	Paid office expenses ₹ 410 and ₹ 80 for stationery in cash.
23	Deposited a cheque for ₹ 21,090 being sale proceeds of goods in Progressive Bank. The Bank credited the amount on the same day and debited ₹ 21 as cheque discounting charges.
23	A cheque for ₹ 8,000 drawn by Mr. Lal himself on Progressive Bank was deposited in his account with Goodwill Bank.
25	Cash drawn from the account with Progressive Bank ₹ 600 for office use.
25	A cheque for ₹ 1,100 received from Mr. A and earlier deposited in Goodwill Bank (on 14th June) was returned unpaid and Bank debited ₹ 10 towards its charges. Mr. Lal received the amount of returned cheque and Bank charges in cash from Mr. A.
28	Deposited cash ₹ 1,500 in the account with Goodwill Bank.
29	Purchased postal stamps for ₹ 200 and paid in cash.

Q. Prepare a Cash Book with Cash and Bank Columns from the following particulars∶−

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

Q. From the following particulars, prepare a Cash Book with Cash and Bank Columns:

2017
Jan. 1	Balance of Cash in Hand ₹ 15,000 and Bank Overdraft ₹ 6,000
3	Issued a cheque of ₹ 4,800 to Mr. Black and earned a discount of ₹ 200.
4	Direct deposit by Mr. Kapil in our bank account ₹3,800. Discount allowed ₹ 200.
5	Given as charity ₹ 100.
7	Issued a cheque of ₹ 500 to the petty cashier.
15	Goods worth ₹ 10,000 were sold to Ganesh on 10th January. Its payment was received today by cheque after deducting 5% cash discount.
16	Deposited the above cheque into Bank.
17	Goods purchased from Raghu for ₹ 8,000. Payment is made after deducting 3% cash discount.
18	Bought postage stamps ₹ 200.
20	Paid ₹ 4,000 by cheque for furniture purchased.
22	Arun who owed us ₹ 6,000 became bankrupt and paid 60 paise per ₹.
24	Collected from Anil ₹ 5,000 in cash and deposited into bank the next day.
24	Cash purchases of stationery ₹ 200.
25	X settled his account of ₹ 7,000 by cheque of ₹ 6,850.
	Cheque was deposited into the bank on 28th January.
27	Settled Y's account of ₹ 8,000 by cheque after deducting therefrom 2 $\frac{1}{2}$ % cash discount.
29	Cash sales for ₹ 10,000, received cheque.
30	Interest charged by bank ₹ 1,500.

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

From the following entries in the Bank column of the cash Book of Mr. Kunal and the corresponding Bank Statement, prepare Bank Reconciliation Statement as on 30^th April 2011.

Cash Book (Bank Column)
Dr. Cr.
Date	Receipts	Rs	Date	Payments	Rs
2011 April 1	To Balance b/d	12,500	2011 Apr. 1	By Salaries A/c	4,000
4	To Sales A/c	8,000	7	By Purchases A/c	3,200
8	To Paritosh A/c	1,500	9	By Machinery A/c	6,000
13	To Mahima’s A/c	3,400	11	By Omkar’s A/c	1,000
18	To Karina’s A/c	4,600	15	By Drawings A/c	800
21	To Furniture A/c	1,200	18	By Vijay’s A/c	2,000
25	To Sales A/c	3,800	20	By Shobha’s A/c	1,000
30	Too Firoz’s A/c	3,000	28	By Printing A/c	500
			30	By Balance c/d	19,500
		38,000			38,000

Bank Statement
Date	Particulars	Deposits Rs	Withdrawals Rs	Balance Rs
2011 April 1	Balance			12,500
2	Cheque		4,000	8,500
6	Cash	8,000		16,500
6	Cheque		3,200	13,300
10	Paritosh	1,500		14,800
16	Mahima	3,400		18,200
17	Cheque		800	17,400
20	Karin	4,600		22,000
24	Cash	3,800		25,800
28	Cheque		6,000	19,800
28	Shobha		1,000	18,800
30	Interest	100		18,900
30	Firoz	3,000		21,900
30	Bank Charges		10	21,890

You are required to prepare Bank Reconciliation Statement as on 30th April 2011

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Journal Proper
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
May 08	Cheque-In-Hand A/c	Dr.		60,000
	To Diwedi				60,000
	(Cheque received from Diwedi)