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 Discount not withdrawn.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

Open in App

Solution

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 14,800 Feb. 01 Balance b/d 32,700

Feb. 04 Sales A/c 4,950 Feb. 16 Bank A/c C 2,200

Feb. 16 Cheques in-Hand A/c 12,800 Feb. 18 Ram 12,820

Feb. 16 Cash A/c C 2,200 Feb. 20 Shyam 5,000

Feb. 19 Ram 12,820 – Feb. 20 Bank Charges A/c 40

Feb. 22 Murlidhar 6,200 Feb. 24 Purchases A/c 5,000

Feb. 25 Sudhir 4,000 – Feb. 28 Salary A/c 3,000

Feb. 28 Cash A/c C 20,000 Feb. 28 Bank A/c C 20,000

Feb. 28 Balance c/d 9,410 Feb. 28 Balance c/d 6,420

31,620 55,560 31,620 55,560

Mar. 01 Balance b/d 6,420 Mar. 01 Balance b/d 9,410

Working Note:

Journal Proper

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

2017

Feb.08 Cheques-in-Hand A/c Dr. 9,500

Discount Allowed A/c Dr. 500

To Navin
10,000

(Cheque received from Navin)

Feb.12 Praveen Dr. 9,800

To Cheques-in-Hand A/c
9,500

To Discount Received A/c
300

(Cheque endorsed to Praveen)

Feb.15 Cheques-in-Hand A/c Dr. 12,800

Discount Allowed A/c Dr. 200

To Ram
13,000

(Cheque received from Ram)

Note: Transaction dated February 08, 2017, February 10, 2017 and February 12, 2017, will not be recorded in Cash Book because these transactions will not affect the cash/bank balance.

Suggest Corrections

Similar questions

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.

Q. Prepare a Cash Book with Cash and Bank Columns from the following transactions:−

2017
March 1	Cash in hand ₹ 1,800 and at Bank ₹ 11,000.
5	Received a cheque for commission ₹ 3,960. Cheque was immediately deposited into bank.
7	Bought goods for cheque ₹ 7,000.
8	Bought goods for cash ₹ 500.
10	Purchased a Computer and payment made by cheque of ₹ 5,000.
14	Paid Trade Expenses ₹ 105.
16	Paid into Bank ₹ 1,000.
18	Ramesh who owed us ₹ 500 became bankrupt and paid us 50 paise in a ₹.
20	Received ₹ 400 from Manohar and allowed him discount ₹ 10.
23	Withdrew from Bank ₹ 400.
23	Paid ₹ 300 to Ghanshyam Dass & Co. They allowed us discount ₹ 10.
24	Received ₹ 2,000 from Hari Ram and deposited the same into Bank.
25	Withdrew from Bank for private expenses ₹ 300.
27	Sold goods for cash ₹ 200.
28	Received cheque for goods sold ₹ 9,000.
29	Received repayment of a loan of ₹ 5,000 and deposited ₹ 3,000 out of it into Bank.
30	Bank charges as per Book ₹ 5.

Q. From the following transactions, prepare Cash Book with Cash and Bank Columns:−

2016		(₹)
May 1	Cash in hand	4,800
	Bank Overdraft	30,400
2	Fresh Capital introduced	20,000
3	Deposited into Bank	15,000
4	Sold goods to Mahesh on Credit	6,200
5	An amount of ₹ 4,200 due from Ashok written off as bad debts in the previous year, now recovered.
6	Withdrew from bank for the payment of Life Insurance Premium	3,000
8	Received a cheque form Mahesh for ₹ 6,000 in full settlement of his account and deposited the same into the Bank.
10	Sold goods to Varun on Credit.	30,000
12	Received a cheque for ₹ 28,000 from Varun in full settlement.
15	Cheque received from Varun sent to Bank
18	Varun's cheque returned by Bank dishonoured. Bank charged ₹ 25 on this cheque.
20	Received a cheque of ₹ 6,800 from Vijay which was endorsed to AmritRaj on 23rd May.
25	Withdrew cash from Bank ₹ 5,000 for paying gift to his daughter on her birthday.
26	Bought goods from Gupta General Store for ₹ 10,000 on credit and they allowed us trade discount of 25%.
28	Paid to Gupta General Stores in cash in full settlement	7,000
28	Sale of old machinery, payment received in cash ₹ 7,700.
30	Paid Salary by cheque ₹ 1,500. Paid Rent in cash ₹ 2,200.
31	Paid into Current Account the entire balance after retaining ₹ 5,000 at office.

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

Q. Enter the following particulars in the Cash Book with Cash and Bank columns:−

2016
April 1	Balance of cash in hand ₹ 2,000 and at Bank ₹ 12,000.
3	Received cash from Madhav ₹ 1,800.
5	Cash Sales ₹ 1,000
6	Purchases by cheque ₹ 745.
9	Paid into Bank ₹ 1,850.
10	Paid cash for freight ₹ 54.
12	Drew from Bank for office use ₹ 600.
13	Issued a cheque in favour of M/s Arun & Sons for ₹ 985.
16	Paid into Bank ₹ 715.
17	Drew Cash for his son's birthday party ₹ 175.
19	Received a cheque from Navin for ₹ 380 and deposited it into bank on the same day.
20	Cash Sales ₹ 200.
25	Drew from Bank for office use ₹ 200.
26	Purchased furniture for ₹ 1,000 and payment made by cheque.
27	Navin's cheque dishonoured, Bank charges ₹ 5.
29	Purchased business premises, payment made by cheque ₹ 12,000.
30	Received cheque for ₹ 675 from Harish.

Join BYJU'S Learning Program

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

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		14,800		Feb. 01	Balance b/d			32,700
Feb. 04	Sales A/c			4,950	Feb. 16	Bank A/c	C	2,200
Feb. 16	Cheques in-Hand A/c			12,800	Feb. 18	Ram			12,820
Feb. 16	Cash A/c	C		2,200	Feb. 20	Shyam			5,000
Feb. 19	Ram		12,820	–	Feb. 20	Bank Charges A/c			40
Feb. 22	Murlidhar			6,200	Feb. 24	Purchases A/c			5,000
Feb. 25	Sudhir		4,000	–	Feb. 28	Salary A/c		3,000
Feb. 28	Cash A/c	C		20,000	Feb. 28	Bank A/c	C	20,000
Feb. 28	Balance c/d			9,410	Feb. 28	Balance c/d		6,420
			31,620	55,560				31,620	55,560
Mar. 01	Balance b/d		6,420		Mar. 01	Balance b/d			9,410

Journal Proper
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2017
Feb.08	Cheques-in-Hand A/c	Dr.		9,500
	Discount Allowed A/c	Dr.		500
	To Navin				10,000
	(Cheque received from Navin)

Feb.12	Praveen	Dr.		9,800
	To Cheques-in-Hand A/c				9,500
	To Discount Received A/c				300
	(Cheque endorsed to Praveen)

Feb.15	Cheques-in-Hand A/c	Dr.		12,800
	Discount Allowed A/c	Dr.		200
	To Ram				13,000
	(Cheque received from Ram)