Question

Prepare single column cash book for the month of April 2016 of Lalit, a trade from the following particulars and post them into ledger.

$\begin{array}{ccc}2016& \text{Particular}& \text{Amt(Rs)}\\ \text{Apr 1}& \text{Cash in hand}& 75,000\\ \text{Apr 2}& \text{Cash sales}& 7,80,000\\ \text{Apr 3}& \text{Deposited cash into bank}& 6,00,000\\ \text{Apr 3}& \text{Paid Cheque to creditors of Rs 1,49,700 after deducting cash discount of}& 9,300\\ \text{Apr 4}& \text{Wages paid in cash}& 67,500\\ \text{Apr 4}& \text{Cash sales of Rs 5,40,000 of which Rs 4,50,000 were banked on 7th April}& \\ \text{Apr 9}& \text{Paid cash to tranport corporation of India Rs 13,500 against their bill number 265}& \\ \text{Apr 15}& \text{Cash sales Rs 4,50,000 of which 3,60,000 were banked on 16th April}& \\ \text{Apr 17}& \text{Paid to cleaner in cash}& 10,800\\ \text{Apr 19}& \text{Cash sales}& 3,42,000\\ \text{Apr 20}& \text{Deposited cash into bank}& 2,25,000\\ \text{Apr 20}& \text{Paid cash for window cleaning}& 5,400\\ \text{Apr 21}& \text{Purchased goods on credit}& 45,000\\ \text{Apr 25}& \text{Paid csh for rates}& 1,08,000\\ \text{Apr 26}& \text{Cash sales}& 5,76,000\\ \text{Apr 28}& \text{Paid cash to Dharma, a creditor after deducting discount Rs1,500}& 28,500\\ \text{Apr 29}& \text{Paid electricity bill in cash}& 27,000\\ \text{Apr 30}& \text{Cash collected from Karun (Debtor)Rs 1,35,000 after allowing discount of Rs 7,500}& \end{array}$

Answer 1

Working Note:

(i) Credit purchases are not recorded in the cash book since the cash book is maintained to record only cash transactions.

(ii) Cheque issued to creditors of Rs. 1,49,700 on 3rd April, is not recorded in a single column cash book.

(iii) Cheque deposited into a bank is not a cash transaction.

(iv) Discount allowed to Karun Rs. 7,500 and discount received from Dharma Rs. 1,500 shall be recorded through journal entry in the following manner.