Question

Prepare a Two Column Cash Book from the following transactions∶−

2016
May 1	Cash at office ₹ 72.
	Bank overdraft ₹ 1,250.
4	Received from Prem Chand a cheque for ₹ 1,875 in full settlement of his account of ₹ 1,900. The cheque was banked on the same day.
5	Bought goods and paid by cheque ₹ 500.
6	Narinder settled his account of ₹ 700 by a cheque. This was banked on the same day.
9	Paid to Manohar Lal by a cheque for ₹ 420. Discount received ₹ 80.
12	Cash sales to date ₹ 400 of which ₹ 300 were banked.
17	Sold old typewriter for cash ₹ 320.
20	Received a cheque for ₹ 400 from Naresh in full settlement of his account of ₹ 460. The cheque is endorsed to Suresh on 24th May in full settlement of his account of ₹ 420.
25	Received a cheque from Hari Prakash for ₹ 150. The cheque is endorsed to Raj Prakash on 27th May; Discount received ₹ 30.
28	Withdrew from Bank for office use ₹ 100 and for personal use ₹ 100.
29	WIthdrew (from office) for payment of private bills ₹ 425.
30	Paid by cheque salaries ₹ 160 and rent ₹ 100.
31	Bank charges as per Pass Book ₹ 5.

Answer 1

Cash Book
Dr.										Cr.
Date		Particulars	L.F.	Cash (Rs)	Bank (Rs)	Date	Particulars	L.F.	Cash (Rs)	Bank (Rs)
2016						2016
May 01		Balance b/d		72		May 01	Balance b/d			1,250
May 04		Prem Chand			1,875	May 05	Purchases A/c			500
May 06		Narinder			700	May 09	Manohar Lal			420
May 12		Sales A/c		100	300	May 28	Cash A/c	C		100
May 17		Office Equipment A/c		320		May28	Drawings A/c			100
May 28		Bank A/c	C	100		May 29	Drawings A/c		425
						May 30	Salaries A/c			160
						May 30	Rent A/c			100
						May 31	Bank Charges A/c			5
						May 31	Balance c/d		167	240
				592	2,875				592	2,875
Apr. 01		Balance b/d		167	240

Working Note:

Journal Proper
Date	Particulars				L.F.	Debit Amount (Rs)	Credit Amount (Rs)
2016
May 20	Cheques-in-Hand A/c			Dr.		400
	Discount Allowed A/c					60
	To Naresh						460
	(Received cheque from Naresh in full settlement of his claim)
May 24	Suresh			Dr.		420
	To Cheques-in-Hand A/c To Discount Received A/c						400
							20
	(Cheque received from Naresh, endorsed to Suresh)
May 25	Cheques-in-Hand A/c			Dr.		150
	To Hari Prakash						150
	(Cheque received from Hari Prakash)
May 27	Raj Prakash			Dr.		180
	To Cheques-in-Hand A/c To Discount Received A/c						150
							30
	(Cheque received from Hari Prakash, endorsed to Raj Prakash)