Question

Prepare Two Column Cash Book from the following transactions and balance the book on 31st Jan., 2014:-

2014
Jan. 1	Cash in hand ₹ 50,000; Bank overdraft ₹ 1,90,000.
Jan. 2	Purchased goods from Rajesh Kumar of the list price of ₹ 50,000 at 5% trade discount and payment made by cheque.
Jan. 6	Goods sold for ₹ 80,000 and payment received by cheque. Cheque deposited into Bank on same day.
Jan. 10	Goods purchased for cash ₹ 19,800.
Jan. 15	Furniture sold for ₹ 1,77,000 and payment received by cheque & cheque deposited into Bank on same day.
Jan. 18	Salaries paid ₹ 4,500.
Jan. 21	Settled the amount due to Ram ₹ 2,000 by paying cash ₹ 1,910.
Jan. 22	Cash received from Jai ₹ 14,780 in full settlement of his account of ₹ 15,000.
Jan. 23	Paid Life Insurance premium ₹ 1,500.
Jan. 31	Deposited with bank the entire balance after retaining ₹ 7,000 cash in hand.

Answer 1

	Cash Book
Dr.											Cr.
Date		Particulars	L.F.	Cash (₹)	Bank (₹)	Date		Particulars	L.F.	Cash (₹)	Bank (₹)
2014						2014
Jan 01		Balance b/d		50,000		Jan 01		Balance b/d			1,90,000
Jan 06		Sales A/c			80,000	Jan 02		Purchases A/c			47,500
Jan 15		Furniture A/c			1,77,000	Jan 10		Purchases A/c		19,800
Jan 22		Jai A/c		14,780		Jan 18		Salaries A/c		4,500
Jan 31		Cash A/c			30,070	Jan 21		Ram A/c		1,910
						Jan 23		Drawings A/c		1,500
						Jan 31		Bank A/c		30,070
						Jan 31		Balance c/d		7,000	49,570
				64,780	2,87,070					64,780	2,87,070